The insurance industry has been at the centre of discussions after the GST new rates were announced. GST rates on key insurance products have been brought down to 0. While consumers have hailed the decision, the question is how does it impact the insurance industry? The Finance Ministry officials met top insurance company CEOs on September 10 to discuss the issue, as per a report by CNBC-TV18. According to CNBC-TV18, several industry representatives presented their demands before the government to discuss concerns regarding the recent changes in Goods and service tax (GST).
Insurance industry seeks clarity on GST changes
According to report, insurance CEOs requested that GST changes should be implemented prospectively. They also sought input tax credit (ITC) benefits on renewal policies. The Finance Ministry officials heard the representations made by the insurance companies and acknowledged their demand.
Insurance CEOs to meet CBIC on September 12: Report
According to CNBC-TV18, insurance CEOs are also expected to meet the Central Board of Indirect Taxes and Customs (CBIC) on September 12 to push their demands further, particularly around GST changes and ITC-related issues.
According to another Moneycontrol report, CBIC is also meeting key industry representatives from hospitality, insurance and textiles this week. The aim is to ensure that retail prices reflect the new GST rates from September 22.
On September 3, the GST Council had introduced major revamp in tax slabs. The GST new rates are expected to improve consumption and boost spending.
