Union Finance Minister Nirmala Sitharaman addressed the contentious issue of the 18% Goods and Services Tax (GST) on health insurance during a Lok Sabha debate. Responding to the opposition's demands for the removal of GST on health and life insurance, bolstered by a letter from Union Minister Nitin Gadkari, Sitharaman clarified that the tax on health insurance existed even before the introduction of GST. She emphasized that this was not a new issue and had been prevalent across all states prior to GST implementation. Highlighting the distribution of GST revenue, Sitharaman noted that out of every ₹100 collected as GST on health insurance premiums, ₹74 is allocated to the states. She challenged those protesting to address the issue within their states, questioning if they had discussed the removal of this tax locally. Additionally, PTR Palanivel Thiaga Rajan, Tamil Nadu's Minister for IT & Digital Services, explained in a video how the GST system works. He noted that the union government holds 33% of the voting power in GST Council decisions, effectively giving it a significant influence. Any resolution requires a majority to pass, and if the union government votes against it, the resolution fails. The remaining 66% of votes are distributed among the states, but this vote is split unevenly, with smaller states having a disproportionately small share. This design of "one state, one vote" means that the union government's opposition can block any resolution, making it challenging for states to independently push through changes such as reducing the GST on health insurance.