Insurance Brokers Push for Zero-Rated GST to Restore Input Tax Credit and Prevent Premium Hikes

• Insurance brokers are advocating for a zero-rated GST structure to reclaim input tax credit, aiming to reduce costs, prevent commission cuts, and avoid premium hikes.
• The industry is divided on the proposal due to the significant policy changes required.
• The Insurance Brokers’ Association of India (IBAI) plans to approach the GST Council and CBIC after receiving initial positive feedback from officials.
• Zero-rating would allow insurers and intermediaries to claim input tax credit on expenses, addressing concerns from recent GST exemptions that blocked such credits.
• Some insurers are hesitant to support the move, but brokers argue it would benefit both intermediaries and insurance companies while maintaining affordability for policyholders.

Source: http:

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.

---

---