- Insurance companies in India oppose GST exemption on term insurance policies
- Removing or lowering GST would eliminate Input Tax Credit benefits for insurers
- Insurers could lose up to 11% on term plans due to lost ITC benefits
- Higher expenses for insurers may lead to increased premiums for policyholders
- Industry calls for a minimum 12% GST rate on term insurance to retain ITC benefits
- Insurers seek reduction in GST rate on insurance commission services if tax on term plans is lowered
- Government aims to reduce GST rates on essential services to benefit consumers
- Insurers argue that cutting GST without preserving ITC raises production costs
- Ministerial panel to revisit issue after concerns raised by IRDAI and finance ministry
- Insurers warn that reducing or removing GST without retaining input credits could make term insurance more expensive for consumers.
Source: taxscan.in
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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