According to sources, after the IRDAI report, the Group of Ministers is reconsidering this issue. Insurance companies are demanding 12% GST. Companies had expressed apprehension of increase in premium if GST is waived. Due to zero GST on health and term insurance, the government may incur an annual loss of Rs 3500 crore
There seems to be little chance of complete waiver of GST on health and life insurance premiums. According to sources, the Group of Ministers formed on this issue may recommend 5% GST. Giving more information on this, CNBC-Awaaz correspondent Alok Priyadarshi quoted sources as saying that GST on health and life insurance premiums is not expected to be completely removed. A consensus may be reached on 5% GST in the Group of Ministers.
According to sources, after the IRDAI report, the Group of Ministers is reconsidering this issue. Insurance companies are demanding 12% GST. Companies had expressed apprehension of increase in premiums if GST is waived off. Zero GST on health and term insurance may cause an annual loss of Rs 3500 crore to the government. The next meeting of GoM will be held in April. The GST Council meeting is likely in May.
Let us tell you that in the first report of GoM, it was recommended not to impose GST on senior citizens and health insurance with cover up to Rs 5 lakh. It was also recommended to waive GST on life and term insurance premiums. However, insurance companies are demanding 12% GST with input tax credit.
Amidst this news, action is being seen in the shares of insurance companies today. Action is being seen in the shares of SBI Life, HDFC Life, ICICI Lombard, ICICI Prudential, LICs, Aditya Birla Sun Life and Max Life. SBI LIFE is seen at the level of Rs 1578.75 with a gain of Rs 30.95 i.e. 2.00 percent. Its day’s high today is Rs 1,584. HDFC LIFE is also seen at around Rs 682.30 with a gain of Rs 3.00 i.e. 0.44 percent.
ICICI Lombard is trading at Rs 1771.50 with a gain of Rs 48.65 i.e. 2.82 percent. ICICI PRU is also seen at Rs 597.25 with a gain of Rs 15.85 i.e. 2.73 percent. LIC is trading around Rs 806 with a gain of Rs 15.20 i.e. 1.92 percent.
