Lower GST to stem slowdown in sales of life insurance policies: Insurers request GST Council
In what could be one of the top agenda items that the Union Government might pick up after assuming office after the ongoing general elections, insurance companies have knocked on the doors of the GST Council. These companies are seeking a cut in GST rates in a phased manner, beginning with a reduction of levies on life insurance, followed by health insurance.
According to sources, insurance companies have submitted a detailed representation seeking a reduction in GST rates on life insurance products from the current 18% to 12%, citing that high rates are pushing people to opt out of life insurance and go for alternatives. The government’s agenda to push inclusive growth and have an insured society is getting defeated, with premiums and products becoming more costly, they added.
The insurers are also demanding a similar reduction from the current 18% to 12% on health insurance, following the reduction in life insurance.
