GST cut on insurance: Relief for common man sparks political credit war

A landmark move to make health and life insurance more affordable by placing them under the Nil GST bracket is at the centre of a political debate. The decision comes at a time of high medical inflation, intended to incentivise insurance penetration. While the government, through a statement by Amit Shah, has termed it a reform that will bring "huge relief to the poor and middle class", the opposition has claimed credit. A Trinamool Congress statement attributed to Mamata Banerjee called it a "victory for common people, a victory rested. From a tone deaf regime that only listens when forced". Concerns have also been raised about the significant revenue loss for states, with questions posed on the quantum and timeline for compensation. The discussion also explores the broader economic impact, including benefits for the MSME sector through simplified compliance, rationalised duty structures, and a potential boost to consumption.