- The central government is contemplating a reduction in the GST on health and life insurance premiums from 18%, with ongoing discussions about potential new rates of nil, 5%, or 12%, reflecting differing opinions from state ministers and the insurance industry.
- The insurance sector has proposed a 12% GST rate to enable full input tax credit claims, while some state officials advocate for a 5% rate to mitigate revenue losses for the government. The GST Council has requested recommendations from the Insurance Regulatory and Development Authority of India (IRDAI) for consideration in an upcoming meeting.
- A consensus appears to be forming between the government and insurers on a 12% GST rate, with assurances that any tax reduction will be translated into lower premiums for consumers, as the demand for a GST cut has been driven by India’s low insurance penetration and high out-of-pocket healthcare spending.
Source A2ztaxcorp
Latest Posts in "India"
- GST Success Hinges on Single Tax Rate, Report Recommends Two Slabs and Capped Peak Rate
- Uncertainty in GST Treatment for Ride-Hailing Platforms: Legal Challenges and Implications
- 56th GST Council meeting is scheduled for September 3rd and 4th, 2025
- Eight States Demand GST Rate Cuts Be Tied to Revenue Guarantee and Consumer Benefits
- CII Urges Corporates to Transfer GST Rate Cut Benefits to Consumers Before Festive Season
