In 2014, the Central government implemented 18% GST on all premiums for insurance policies. GST was also imposed on interest for loans on policies and renewal of policies. “There is also GST on the service charge for changing nominations. This is affecting policyholders across the nation. Life insurance corporation of India is one of the biggest capital providers for the government as it attracts long-term investments. The government should, in turn, encourage people to invest in insurance. Instead, the imposing of GST is discouraging,” said N.P. Ramesh Kannan, general secretary of the union.
Source: a2ztaxcorp.com
