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.
Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.
- Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
- Now Save Rs.3150 on your Demat Account ...Click here
- Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
- Get the most detailed result analysis on the web - Real Fast!
- Actionable & Award-Winning Research on 500 Listed Indian Companies.