No need to wait till 22 September for GST-free insurance policy! Start getting 100% benefit right now..

There is some relief news for those who have health and life insurance. Recently, the GST Council has announced the complete abolition of 18% GST on health and life insurance premiums. This rule will come into effect from September 22. Along with this, GST exemption will also be available on the cost of reinsurance. This initiative of the government can reduce the pricing pressure on the industry.

Although the zero-GST regime will officially come into effect from September 22, insurance companies and online platforms have started giving its benefits to the customers from now on. Customers can buy a policy without paying GST today itself. However, the coverage will start only from September 22.

Buy a GST-free policy now.

Anand Roy, MD and CEO of Star Health and Allied Insurance, told CNBC, "This reform will make health insurance more accessible and affordable for millions of Indians. We have made arrangements with intermediaries so that customers do not have to wait, and they can buy a GST-free policy from now on." Companies have started giving relief to customers
PB Fintech's Joint Group CEO, Sarvbir Singh, said, "The government's decision to reduce GST on health and term insurance from 18 percent to 0 percent is a very progressive reform. The insurance industry has jointly made arrangements to provide this facility to customers immediately."

Questions remain on the commission and ITC.
Still, some concerns remain in the industry. The Life Insurance Council will soon meet the Insurance Regulatory and Development Authority of India (IRDAI) to seek support from the government. They demand that GST changes should be implemented prospectively (from a future date) instead of retrospectively (from a previous date), and input tax credit (ITC) should be allowed on renewal premium.

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