Insurance services under the Centrally-sponsored Ayushman Bharat scheme will be exempt from Goods and Services Tax (GST), but other big health insurance segments like private retail and group insurance will remain under GST ambit.
While 10 crore poor families who had no insurance cover will get covered under the Ayushman Bharat scheme, the Union Health Ministry will save about Rs. 1,000- 2,000 crore of incremental costs that it would have otherwise paid as GST on premium to either private insurance firms or trusts, who come on board to run the scheme, Indu Bhushan, CEO of Ayushman Bharat, told Businessline.
