Premiums to fall as Govt finalises GST cut from 18% to 12% on TermLife and Health cover with ITC
On Tuesday, senior officials Ministry of Finance, Insurance Regulatory Development and Authority(IRDA) and insurers had met in Delhi to finalise the GST cut proposals before they are sent to GST Council, headed by Finance Minister Nirmala Sithraman that will take a final call on the move
Government and IRDAI officials have asked insurers to strictly pass on the GST cut benefits to policyholders
New Delhi: In a move, that would cheer the customers of Indian insurance industry, the government has now almost finalised the plans to reduce goods and services tax (GST) both in Term Life Insurance and Health Insurance from 18 per cent to 12 per cent with Input Tax Credit(ITC) and want insurers to pass on this benefits to the customers.
On Tuesday, senior officials Ministry of Finance, Insurance Regulatory Development and Authority(IRDA) and insurers had met here to finalise the GST reduction proposals before they are sent to GST Council, headed by Finance Minister Nirmala Sitharaman and comprising state counterparts, that will take a final call on the move.
Though, the details and technicalities of the GST reduction proposals are yet to be known, the government and the IRDAI officials were very particular that the benefits out of any GST reduction should be strictly passed on the policyholders.
The issue of loss of revenue to the central and state governments were also discussed on Tuesday meeting and the officials had said that the government is now prepared to forgo the revenue that will be benefitting the common man who of late is overburdened with exorbitant premiums, said sources, who have attended the meeting.
