Much anticipated GST changes on Health & Term Life Insurance Get Deferred To Next GST Meet In January
Proposals By GoM Around GST On Insurance Haven't Aligned With What The Insurance Industry Wants!
What Has The GoM Proposed?
1) Exemption of GST on health insurance premium for senior citizens & sum assured up to Rs 5 lakh
2) Reduction of GST on health insurance premium for non-senior citizens
3) Exemption of GST on term life insurance premium
Both life & health insurance industry have been asking for Input Tax Credit (ITC) benefits which can only be sustainable at GST Of 12% On Both Health Insurance Term Life Insurance Premium
Insurance industry believes that GST exemption would take away ITC Benefits
Also, reduction of GST below 12% & the corresponding ITC would be unsustainable & would lead to premium hikes
FM Nirmala Sitharaman said that inputs from Insurance Regulator (IRDAI) are awaited around GST changes on health & term life insurance
All eyes would be on the inputs of IRDAI on GST changes on insurance and the next GST Council meet in January!
Proposals By GoM Around GST On Insurance Haven't Aligned With What The Insurance Industry Wants!
What Has The GoM Proposed?
1) Exemption of GST on health insurance premium for senior citizens & sum assured up to Rs 5 lakh
2) Reduction of GST on health insurance premium for non-senior citizens
3) Exemption of GST on term life insurance premium
Both life & health insurance industry have been asking for Input Tax Credit (ITC) benefits which can only be sustainable at GST Of 12% On Both Health Insurance Term Life Insurance Premium
Insurance industry believes that GST exemption would take away ITC Benefits
Also, reduction of GST below 12% & the corresponding ITC would be unsustainable & would lead to premium hikes
FM Nirmala Sitharaman said that inputs from Insurance Regulator (IRDAI) are awaited around GST changes on health & term life insurance
All eyes would be on the inputs of IRDAI on GST changes on insurance and the next GST Council meet in January!