AIC seeks GST exemption on all rural general insurance plans
Agriculture Insurance Company Ltd. urges the GST Council to eliminate the 18% GST on rural-focused general insurance, including agriculture and allied risks, to improve affordability and coverage. While government-sponsored crop schemes are exempt, the insurer advocates extending similar support to all rural-centric products.
India's largest rural insurer has called for the removal of the goods and services tax (GST) on all rural-focused general insurance products covering agriculture and allied risks to enhance affordability and increase coverage. At present 18% GST is levied on insurance products.
Government-sponsored crop insurance schemes such as Pradhan Mantri Fasal Bima Yojana and Restructured Weather-Based Crop Insurance Scheme, which are also backed by government subsidies, are exempt from this levy.
