New Delhi: With the Ministry of Finance in pressure on more affordable and more affordable insurance, insurance companies ordered to fully share the benefits of GST exceptions to individual life and health policy – existing and potential.
This step is governed by the recent GST Council decision to cancel 18% tax on these policies, a reform that is expected to increase insurance throughout the country.
The instructions came during the meeting, chaired by M. Nagaraja, Minister of Financial Services (DFS) on Monday, with higher ministry officials and other best stakeholders in the insurance industry.
Among those who attended the meeting were Irdai officials (insurance and development and development office of India), chairmen of insurance companies of the public sector, CEOs of the Private Sector’s leading sectors and non -life insurance companies and officials of life insurance council and the General Council of Insurance.
Insurance companies told the government that they were still evaluating the cost of service insurance products as the exemption from GST would also deny them the advantage of the entry tax loan.
Previously, they told the government that rejection of a credit tax loan or no exemption from various services used by insurance companies would prevent them from reducing policies to the scope of GST rates.
Despite concerns previously expressed by Nagaraju, he emphasized the importance of ensuring that the benefits of the tax reduction were fully transferred to existing and future policyholders.
For off -road campaigns
The secretary also ordered insurance companies to actively perform off -road campaigns to promote reforms and emphasize their future positive impact to make insurance more accessible and more accessible to an ordinary person.
The government expects to reduce GST rates more and more cost -effective, which would strengthen financial security and strengthen insurance throughout the country.
Before the exemption, 18% of GST were collected for insurance, but this tax came with the advantage of the entry loan. Accordingly, insurance companies could reduce their taxable liability by balancing and claiming credits to the GST melody, which they paid for the goods and services they used.
Insurers will create expenditures such as office maintenance, agents, marketing expenses, etc. All these expenses attract GST. Since these are the entry into the final product (which is an insurance policy), the government allowed insurance companies to request loans against GSTs they collected from policyholders and reduced their total tax liability.
The DFS meeting was attended by Swaminathan S. Iyer, the whole member (Life), Irdai; R. Dooraiswamy, CEO and MD, India Life Insurance Corporation; Girija Subramanian, Director of President-Cum-Managing, New India Assurance Company; Tarun Khagh, MD & CEO, Bajai Allianz Life Insurance Company Limited; Higher representatives of Lombard and Aditya Birla Sun Life Insurance; and other main insurance companies.
(Tagstotranslate) exemption from GST
