Life Insurance Council to meet GST Council on Friday over hiked rates

India Infoline News Service | Mumbai | June 19, 2017 18:24 IST

The Life Insurance Council, an industry body that represents the life insurance companies in India, is likely to meet the GST Council on June 23, 2017 regarding the GST rate on insurance that was recently announced by the GST Council. Life Insurance Council is also meeting with the local tax representatives in Mumbai on June 19.

The Life Insurance Council, an industry body that represents the life insurance companies in India, is likely to meet the GST Council on June 23, 2017 regarding the GST rate on insurance that was recently announced by the GST Council. Life Insurance Council is also meeting with the local tax representatives in Mumbai on June 19.

The insurance companies had sought that the industry should be kept out of the ambit of GST or be kept in the lowest tax bracket under the GST. However, the GST Council has imposed 18% tax on the insurance sector, the cost of which will be directly transferred to the insured in the form of enhanced premium payments.
     
At present, the insurance sector is subjected to a 15% tax rate, including service tax and other levies. Hence, a substantial increase of 3% tax on the insurance sector is expected to impact the industry bigwigs, including Life Insurance Corporation of India (LIC), which has over 20 million policyholders.

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