Open Access Research Article
IMPACT OF GST ON INSURANCE INDUSTRY BY:- SHIVAM PANDEY & TEJAS SINGH
Published Paper
Article Details
IMPACT OF GST ON INSURANCE
INDUSTRY
AUTHORED BY:- SHIVAM
PANDEY
(LLB - UNIVERSITY OF
DELHI, LLM - WBNUJS)
CO-AUTHOR - TEJAS SINGH
(BBA. LLB – BENNETT
UNIVERSITY, LLM – WBNUJS)
Abstract:
In a society like ours,
where social security is non-existent and credible retirement plans are
non-existent, securing one's future becomes a pressing concern. This is where
purchasing insurance comes in handy.
The insurance industry
experienced substantial expansion during deregulation, thanks to the merger of
private insurers, product innovation, and the introduction of different
distribution channels. The rise in the foreign direct investment (FDI) ceiling
from 26 percent to 49 percent helped to boost this. Since then, insurance
companies have worked together with the Insurance Regulatory and Development
Authority of India (Irdai) to strengthen India's insurance business. As a
result, we now have a large number of private competitors in the industry, as
well as a lot of product innovation tailored to individual consumer needs.
Despite all of the
progress made in the business, India remains a vastly underserved market.
Despite the fact that we are the world's second most populous country, we
account for less than 1.5 percent of overall insurance premiums and roughly 2%
of life insurance premiums.
According to a Swiss Re
research, Indian households have a significant insurance gap. According to the
analysis, a typical Indian household has only $7.8 in savings and insurance for
every $100 needed for protection, leaving a large mortality protection gap of
$92.2.
We've seen great growth in
this industry so far, but it'll take a continued effort to keep the momentum
going. Financial literacy, incentives for Indian households to move savings
from physical to financial assets, and expanding the distribution network to
rural areas are all expected to help bring more people under the insurance
umbrella. The policy and regulatory environment, as well as consumer response,
will determine the industry's growth and stability in the next years.
Purchasing insurance will continue as long as insurance companies use the
correct kind of solution-based selling approach, which would have been aided by
a more favourable indirect taxation structure. In India, insurance companies
have worked hard to raise financial awareness and enhance insurance
penetration. We hope that as the country enters a new economic phase, the
industry receives the attention and support it deserves.
Introduction
THE GENERAL INSURANCE
INDUSTRY, which used to have a single registration across India, now has
separate registrations in each state where it operates.
Due to restrictions on
cross-utilization of credits between State VAT and service tax regulations, a
portion of the input credit lost on claim spending was not available to these
businesses in the service tax system. Today, GST has proven to be a game changer
for them, combining many taxes into a single Act, albeit with certain
difficulties.
The first concern is the
impact of anti-profiteering regulations on general insurance companies' motor
insurance business.
In a conventional
automobile insurance policy, the insured has his car repaired at the expense of
the insurance company in the event of an accident. The general insurance
carrier is responsible for its agreed-upon percentage of the cost, which may
include vehicle part replacement and related service fees. The garage used to
charge state VAT on the component of the value attributable to part replacement
as a sale of goods and service tax on the portion of the value attributed to
service provision as a sale of services under the pre-GST regime. The insurance
firm was not qualified for the input tax credit (ITC) of the state VAT charged
by the garage because it was a service provider. It came at a price to the
corporation. They were only entitled for ITC benefits to the degree that the
garages charged service tax on the provision of services.
With the implementation of
GST, the garage now charges GST on the entire invoice value, which the
insurance company can claim as an ITC. In other words, the tax levied by
garages on the value of parts replaced is no longer a cost to the insurance
company under the GST scheme.
In this regard, one must
keep in mind the anti-profiteering requirements of GST, which mandate that any
benefit of input tax credit must be passed on to the ultimate customer in the
form of a price decrease.
The insurance industry may
be forced to pass on the above benefits of input tax credits to its consumers
in the form of a price reduction in car insurance contracts.
However, there are a
number of other elements that should be considered and analysed, including:
- Costs such as GST
implementation, compliance, and so on will rise.
- The company's
loss-making status
- Is it possible to avoid
the inconvenience of price revisions by not using such credits?
The cross-charging of
inter-company services given by centralised administration offices to branches
situated in various states is the second issue that concerns the sector. Such
companies' claims and support services are frequently concentrated in one location.
Customers booking insurance policies from branches in other states, on the
other hand, are catered to. Even if such services are supplied free of charge,
the GST law requires taxation of such services provided by the central office
to its other branches. Furthermore, if the other state is not qualified for a
full input tax credit on the cross-charged service cost, the situation becomes
much worse (due to booking of insurance policies which are exempt from GST).
The difficulty in valuing such services, with employee salaries accounting for
the majority of the cost, is the source of the suffering. In the matter of M/s
Columbia Asia Hospitals Pvt. Ltd. - 2018-TIOL-31-AAAR-GST, the Appellate AAR in
Karnataka also held that employee service costs will be included in cross
billing between distinct people.
Let's go on to the third
point. In the automobile industry, there are several instances where a policy
is issued in one state and a claim is settled in another. For example, an
insurance may be issued in Maharashtra, but the car may be involved in an accident
in Gujarat. Normally, the vehicle would be repaired by a garage in Gujarat. In
such a circumstance, the garages have decided to charge Gujarat's CGST and SGST
for the portion of parts in the tax invoice, classifying the transaction as an
intra-state supply of commodities (since the goods are delivered to the
customer right at the garage). This makes it difficult for the insurance
company to obtain input credit for the expense. The insurance firm registered
in Maharashtra will be unable to claim ITC for CGST/SGST paid on the tax
invoice of a garage in Gujarat. Even if the company gives the garage with the
GSTIN of its Gujarat branch, it must be determined whether the input credit can
be claimed by that state because the initial policy was issued in another. Even
if the Gujarat GSTIN is eligible for the ITC, the possibility of cross-charging
such expenses (and how) from the Gujarat registration to the Maharashtra
registration must be considered.
The fourth problem
concerns the taxability of repossessed insured cars sold by the company after
the claim amount has been paid to the insured. Is the company merely serving as
a middleman between the car buyer and the insured? If not, might the company be
considered a dealer in used goods, allowing it to take advantage of the margin
system under Rule 32 of the CGST Rules? What would be regarded the purchase
value of the repossessed car if the response is yes? In the case of salvage
subtracted by the garage from the amount payable by the insurance company, a
similar dilemma emerges. Is it possible that the insurance company would sell
the scrap to the garage?
From July 1st, the goods
and services tax (GST) will create one of the world's largest single markets.
GST is the largest indirect tax reform in history, and it will bring economic
formalisation and transparency. GST is predicted to stimulate economic activity
in the Indian insurance business in the medium to long term. The ease of doing
business would increase when the number of levels of taxation is reduced, and
the government guarantees that GST rates are not significantly different from
current tax rates.
The insurance industry has
a close relationship with GDP growth, and any favourable influence on GDP would
enhance insurance premiums even more.
At the moment, the tax
rate on insurance is 15%. The increase in the GST rate to 18% will have a minor
impact on premiums. It would have been more advantageous if the government had
decided to leave specific retail segments, such as PA, health, and house
insurance, in the lower rate category to help underserved communities. We are
optimistic that the GST Council will conduct a review.
It's critical to recognise
the government's GST vision. It has protected the most vulnerable members of
society from having to bear any additional burdens. All current exemptions,
such as the Hut Insurance Scheme, Cattle Insurance under the Swarnjaynti Gram
Swarozgar Yojna, Weather Based Crop Insurance or the Modified Agricultural
Insurance Scheme, have been preserved in the new GST regime.
GST is expected to improve
government tax collections while also assisting in the long-term reduction of
tax rates, which will be crucial in building a stronger and more competitive
Indian business.
Especially in the previous
decade, the Indian life insurance business has come a long way. People used to
think of insurance as largely a tax planning and financial instrument,
something that promised better returns while avoiding those pesky taxes.
In a society like ours,
where social security is non-existent and credible retirement plans are
non-existent, securing one's future becomes a pressing concern. This is where
purchasing insurance comes in handy.
The insurance industry
experienced substantial expansion during deregulation, thanks to the merger of
private insurers, product innovation, and the introduction of different
distribution channels. The rise in the foreign direct investment (FDI) ceiling
from 26 percent to 49 percent helped to boost this. Since then, insurance
companies have worked together with the Insurance Regulatory and Development
Authority of India (Irdai) to strengthen India's insurance business.
As a result, we now have a
large number of private competitors in the industry, as well as a lot of
product innovation tailored to individual consumer needs.
Despite all of the
progress made in the business, India remains a vastly underserved market.
Despite the fact that we are the world's second most populous country, we
account for less than 1.5 percent of overall insurance premiums and roughly 2%
of life insurance premiums.
According to a Swiss Re
research, Indian households have a significant insurance gap. According to the
analysis, a typical Indian household has only $7.8 in savings and insurance for
every $100 needed for protection, leaving a large mortality protection gap of
$92.2.
How will the goods and services tax (GST) affect
the industry's growth momentum in this scenario?
Insurance is under the 18
percent slab of the four GST slabs—5%, 12 percent, 18 percent, and 28
percent—instead of the old service tax of 15%. The increase in indirect taxes
is in direct opposition to the positive steps achieved in recent years to
promote this sector.
Governments all around the
world, including in more developed markets, are known for creating favourable
conditions for insurance protection. Life insurance is not subject to GST in
several countries.
In a few countries, such
as Australia, Singapore, and South Africa, the cash flow approach is used for
general insurance. For the latter, a tax is levied on the premiums received,
with a credit given for claims paid.
Insurance products are not
subject to GST or VAT in the Asia-Pacific region, where several countries have
the world's greatest insurance penetration. Some cases in China, where policies
of less than one year are subject to a 6% tax, and Taiwan and the Philippines,
where a tax of 2-5 percent is levied outside the GST framework, are exceptions.
Even countries in the
West, such as Canada and the European Union, do not levy a tax on life
insurance. This indicates that these governments recognise the need of
insurance protection and actively promote it through supportive policies.
The taxability of the
gross premium for pure risk policies under the GST framework in India runs
counter to the notion of taxing "value addition." GST is a
value-added tax, and the net premium after claim deduction is the net value
addition. It's difficult to separate the "savings" component and
determine a "value" that may be used as the suitable tax basis,
especially for each premium transaction throughout the course of an insurance
policy's lifetime.
We've seen great growth in
this industry so far, but it'll take a continued effort to keep the momentum
going. Financial literacy, incentives for Indian households to move savings
from physical to financial assets, and expanding the distribution network to
rural areas are all expected to help bring more people under the insurance
umbrella.
The policy and regulatory
environment, as well as consumer response, will determine the industry's growth
and stability in the next years.
Purchasing insurance will
continue as long as insurance companies use the correct kind of solution-based
selling approach, which would have been aided by a more favourable indirect
taxation structure.
In India, insurance
companies have worked hard to raise financial awareness and enhance insurance
penetration. We hope that as the country enters a new economic phase, the
industry receives the attention and support it deserves.
GST's Impact on Insurance
GST, or Goods and Services
Tax, is something we've all heard about. To assist you better comprehend this
tax, here is some background information. GST was first proposed in Parliament
in 2006, with the primary goal of simplifying and unifying the country's
indirect tax system. It's a value-added tax that eliminates the price-cascading
effect of intermittent taxes on goods and services. The law will replace up to
17 federal and state levies with a single, consistent tax structure.
The 18% GST (Goods and
Services Tax) rate on premiums is too high, according to M.R. Kumar, chairman
of Life Insurance Corporation of India (LIC). "The reason for this is that
insurance in India is still sold rather than purchased. It is a legal requirement
for everyone to obtain insurance, and that is what we strive to achieve. We
advise our agents and intermediaries every day to give them insurance and close
the safeguards gap."
November 8, 2021: The
insurance premium industry is taxed at 18%, which is still a significant
amount. In terms of insurance premiums, however, social security is at a bare
minimum. According to IRDAI member Nilesh Sethe, the central government is also
focusing extensively on taxation, especially since several financial industries
are exempt from taxation.
How will the
GST be implemented?
The new GST tax structure
which has take effect on April of 2017 states that All state and national taxes
on products and services, such as excise duty, VAT, service tax, luxury tax,
entertainment tax, and so on, will be merged into a single tax with two
components, namely state GST and central GST, once this occurs. The GST rate
will be calculated by evenly dividing each of these levies. GST is expected to
be charged at a rate of 18 percent. In the current non-GST regime, indirect
taxes on commodities range from 27 to 32 percent, while services are taxed at
15%.
What impact
will it have on goods and services?
The cost of commodities is
projected to fall if the GST is implemented, whereas the cost of services is
likely to rise. However, the overall tax burden on consumers will be greatly
reduced. Small automobiles, two-wheelers, movie tickets, consumables, and
consumer gadgets are anticipated to become less expensive for customers, but
mobile phones, flight tickets, and insurance premiums are likely to increase in
price. Alcohol, electricity, tobacco, and petroleum items are among the few
exemptions to the GST bill.
The Insurance
Industry's Impact
While the GST law will
have an impact on all sectors of the economy, let's look at how it will affect
the insurance industry:
Currently, the usual rate
of service tax is 15%, which includes:
- Basic
Service Tax (BST): 14%
- Cess for
the Swachh Bharat Mission: 5% 14%
- 50 percent Krishi Kalyan Cess
There are additional fees
(such as mortality costs) associated with every insurance policy that must be
paid when the policy is purchased. Aside from the increased insurance fee, the
customer must also pay the Goods and Service Tax (GST). This piece of information,
on the other hand, is not commonly disclosed in commercials. Aside from the
actual economic impact of GST on the insurance business, such costs are borne
by the purchaser of insurance policies. The service tax will be incorporated
into the GST once it is implemented. This will have an impact on insurance
premium rates, which are heavily influenced by the service tax rate. As a
result, both life and general insurance policies will be subject to an 18% GST
tax.
The service tax will be
incorporated into the GST once it is implemented. This will have an impact on
insurance premium rates, which are heavily influenced by the service tax rate.
As a result, both life and general insurance policies will be subject to an 18%
GST tax.
When it comes to
insurance, purchasing health insurance is critical to ensuring one's
well-being. Aside from providing protection in the event of a medical
emergency, health insurance also gives the insured peace of mind. The increased
demand for HEALTH INSURANCE POLICIES is obvious in the face of escalating
healthcare expenditures. Furthermore, in today's world, health is a far more
valuable asset than any other sort of wealth for any individual. As a result,
most insurance companies offer a wide range of health insurance policies to
meet the demands of each individual. The unavoidable obligation of health
insurance is not going away anytime soon. The service tax on health insurance
premiums is currently set at 15%. With the advent of GST, the tax on premiums
will rise to around 18%, making health insurance products more expensive
overall.[1]
Another popular insurance
is MOTOR INSURANCE, which is required by the Indian Motor Vehicles Act for
everyone who owns a motorcycle, car, or any other vehicle. The necessity for
transportation is constant, and having the correct form of car insurance is smart
not only for the insured's protection but also for the safety of third parties.
Aside from that, one of the most important benefits for the insured is the
financial protection provided by any sort of motor insurance. Whether you're
getting vehicle insurance or two-wheeler insurance, the service tax on premiums
is 15%, the same as it is on health insurance. The tax will increase to 18%
after the implementation of GST. This would almost definitely indicate a rise
in the price of.
Whether it's a health
insurance policy or a car insurance policy, both have a recurring impact on the
insured because of their renewal time periods. After a year or two, the
majority of people must renew their plans. In the case of the impact of GST on
the renewability of insurance policies, the insured will be required to pay a
higher premium. Those who have owned policies for a long time, on the other
hand, would be untouched by the GST impact. Customers who choose a three-year
term length for their two-wheeler insurance policy, for example, will not be
subject to additional taxes if their contract does not expire this year. As a
result, the present GST implementation will have no impact on them.
What are the advantages of GST for insurance
buyers?
Despite the fact that GST
will raise the overall cost of a policy, whether it be life or general
insurance, it will enhance competition among insurers. In order to attract
buyers, insurers are likely to drop rates by reducing expenses linked to policy
issuance and other elements that contribute to the overall cost of the
insurance. Furthermore, they will improve the level of service provided while
purchasing insurance products or filing claims. As a result, this is excellent
news for purchasers who, when purchasing insurance plans, frequently overlook
other variables and focus solely on price. What buyers must understand is that
premium is not the only aspect to consider when purchasing any type of
insurance policy. The most important feature of any sort of insurance, whether
it's car insurance or health insurance, is the protection it gives for your
loved ones from unexpected disasters, as well as the various services provided
by the insurer in terms of policy tenure and claims.[2]
Non-Life Insurance Agents Have Sought to Have the
18% GST Removed
In any economy, the
insurance sector plays a critical role in the development of the economy and is
a source of employment and Gross Domestic Product. On May 25, the Confederation
of General Insurance Agents' Associations of India, an umbrella organisation of
non-life insurance agents, urged the government to remove the 18 percent GST on
individual health insurance policies so that more people are encouraged to
purchase health insurance, which is also considered a form of social security.
A memorandum was given by the aforementioned
confederation to:
The following was the
problem raised in the memorandum:
It is an anomaly that all
insurance policies are subject to 18 percent GST. A group of non-life insurance
agents believes that policies on personal lines, which are purchased by
individuals, should be prioritised over policies on commercial lines, which are
purchased by business and commerce. The truth is that the input tax credit is
given to premiums paid for plans that benefit industry and trade. Individuals
who buy health, home security, personal accident, and other insurance policies,
on the other hand, must pay an 18 percent GST, which deters the insurance
business.[3]
Nearly 11 lakh
self-employed licenced non-life insurance broker’s work across the country,
promoting, marketing, and selling these policies on an individual basis.
GST Provides Relief to LIC Holders
The government has
recently clarified that the LIC maturity amount will not be subject to GST in
order to provide relief to LIC holders. The amendments may be made in light of
the current pandemic, which will provide relief to those who were planning to take
their Maturity sum from the LIC. Insurance premiums, on the other hand, are
still subject to GST.
Impact of GST Rates on Insurance Policies and Claims
The GST slab rates for
various insurance products vary. Listed below are a few examples:
1. Term policies are subject
to an 18% GST on the insurance sector. It is the lowest policy available, and
it protects the customer against the cost of mortality. So, out of the Rs. 5000
yearly premium paid by you under the term policy, Rs. 900 will be deducted as
GST. An additional premium of 18 percent GST is payable in the case of an
add-on such as insurance against accidental death (additional compensation in
the event of accidental death).[4]
2. Unit-linked insurance
plans are subject to an 18% GST (Ulips). Aside from it, the policy has other
costs such as premiums and fund management fees. The total money paid under
Ulip is split into two distinct pieces, one for insurance and the other for investment.
On the investment side, there is no GST.
3. When it comes to classic
policies, which are a mix of insurance and investment, the first-year premium
is subject to a 4.5 percent GST rate, with the remaining years' premiums being
subject to a 2.25 percent rate. For example, when paying a $10,000 yearly
premium, be aware that 450 will go towards GST in the first year, and then 225
will be charged as GST on premiums for the remaining years.
4. In the case of insurance
pension plans or annuities, where the consumer pays a lump sum and receives an
annual income in return, GST of 1.8 percent applies. For example, if a consumer
pays a lump sum of ten lakh to receive an annual income of 80,000, the GST
portion will be $18,000 per year.
Term Plan
Term plans are often known
as pure risk protection plans because they only provide a death payout. If the
insured dies during the policy's Term, the cash assured is paid to the nominee.
Aside from term plans with a return of premium (TROP) option, if a policyholder
survives the policy term, he must forego the whole premium because no maturity
value is paid in term plans. The majority of the risk in a term plan is covered
by the premium component, which ensures that the insured is protected during
the policy's duration. At the moment, a 15% service tax is levied on the
premium cost of term plans. With the adoption of GST, the tax will climb to 18%
in the first year, as well as on renewal premiums, beginning in April 2017.
This indicates that the premium will increase by 3%, or 300 basis points.[5]
Plans for Endowment
Endowment programmes and
typical insurance savings plans both provide death and maturity benefits,
depending on which comes first. Endowment plans currently have a 3.75 percent
service tax on the premium in the first year of the policy, which is likely to
climb to 4.5 percent in the first year under the new tax regime. For the second
year, 1.88 percent service tax is paid on endowment plan premiums, which is
scheduled to grow to 2.25 percent with the implementation of GST in the second
year.
ULIP
Unit Linked Insurance Plans (ULIPs) provide both insurance
and investment benefits. ULIP protection is currently subject to a service tax
of 3.5 percent in the first year and 1.75 percent from the second year forward.
This would increase to 4.5 percent in the first year and 2.25 percent in the
second. Plan for Health Insurance Currently, health plan premiums are subject
to a 15% service tax. With the adoption and implementation of the GST, the cost
of acquiring health insurance would rise, as premiums will be subject to an 18%
tax beginning in April 2017.
Automobile Insurance
Motor insurance premiums
are also subject to a 15 percent service tax, which will climb to 18 percent in
April 2017 if the rate is maintained at this level. However, the question
arises as to whether a tax increase should influence your decision to get insurance
or not. True, the GST will make purchasing insurance more expensive, but it is
critical for an individual to protect his life, especially if he is the
family's lone breadwinner. Term life insurance plans are the actual life
insurance plans that cover you and financially pay your family in the event of
your death. International Journal of Enhanced Research in Management and
Computer Applications is an international journal dedicated to advanced
research in management and computer applications.[6]
Application of the GST to Life Insurance Premiums
The GST rate on insurance
policies is 18%. However, this does not mean that if your policy premium is Rs.
1 lakh, you will have to pay Rs. 1.18 lakhs in addition. Only the risk premium
in life insurance policies is subject to GST.
In addition, the
application of GST to the total premium varies depending on the scenario.
Fortunately, you just have to think about two scenarios:
In standard mode, paying a
premium (regular or limited pay)
Paying the premium in one
lump sum (single premium policies)
The three types of life insurance policies are as follows:
?
Term Insurance is a type of insurance that covers
you for (Pure risk policies)
?
Insurance Plans with Units (ULIPs)
?
Endowment Insurance Plan (EIP) Is a savings and
pension plan that is guaranteed.
These policies will be subject to the GST in the following
ways:
Term Insurance is a type of insurance that covers
?
18% of the total premium
?
18% of the total premium is based on 10% of the
total premium.
•
18% on Mortality and all other charges applicable
to the policy for ULIPs.
?
18% on Mortality and any other costs applicable
to the policy; does not apply to investment premiums.
?
The investment premium is exempt from this rule.
?
18% on the first 25% of the premium in the first
year of an endowment plan
?
18% on 12.5 percent of the premium for the
following years
?
18% of the total premium is based on 10% of the
total premium.
If you want to add GST to
the cost of your ULIP premium, you may find that the premium does not include
it. Because the mortality and other expenses will be removed from your unit
balance rather than your premium, this is the case.
However, this will only be
true for policies that do not levy an upfront premium allocation and mortality
penalty. These fees are not included in the Canara HSBC OBC Life Invest 4G
plan, for example.
Assume your yearly ULIP
payment is Rs. 1 lakh, and you're investing in the Invest 4G plan. The entire
sum is invested in the plan's unit-linked funds. Considering that the
first-year mortality charge is Rs. 1000.
By liquidating the fund
units every month, the plan will deduct the charge, as well as any relevant GST
(Rs. 1180) and other taxes.
As a result, no GST may be
deducted from your premium. Instead, the GST will be deducted from the fund
value of the policy, together with the appropriate charges. If your ULIP plan
imposes an upfront premium allocation charge, you may be eligible for a GST
refund in addition to the charge.
On the GST paid for life
insurance, you can claim an input tax credit (ITC).
If you are the policy's
end-user, you will not be able to claim the GST input tax credit on life
insurance separately. You can claim the GST paid on these plans for ITC if you
are an employer providing life insurance as an employee benefit scheme, such as
gratuity, leave encashment, and so on.
Deduction for GST on Life Insurance Premiums
You can deduct the entire
cost of your health or life insurance premiums. This amount will also include
GST. So, if your total life insurance premiums for the year totaled Rs. 1.5
lakhs (including GST), you can deduct the entire amount under section 80C.
Similarly, under section
80D, health insurance premiums are fully deductible.
As a result, you are not
required to claim an ITC for GST paid on individual life and health insurance
plans. Other insurance covers, such as car and home, however, do not allow you
to claim a discount as an individual user.
You can claim ITC on GST
spent on insurance only if you are providing a commercial service and have
purchased insurance as part of that service.
Insurance products are not
subject to GST or VAT in the Asia-Pacific region, where several countries have
the world's greatest insurance penetration. Some cases in China, where policies
of less than one year are subject to a 6% tax, and Taiwan and the Philippines,
where a tax of 2-5 percent is levied outside the GST framework, are exceptions.
Even countries in the
West, such as Canada and the European Union, do not levy a tax on life
insurance. This indicates that these governments recognise the need of
insurance protection and actively promote it through supportive policies.
The taxability of the
gross premium for pure risk policies under the GST framework in India runs
counter to the notion of taxing "value addition."
References:
?
GST and the insurance sector:
?
International Journal of Management Research and
Social Science (IJMRSS) Volume 3, Issue 2 April-June 2016.
?
Vasanthagopal, .R (2011), “GST in India: A Big
Leap in the Indirect Taxation System”, International Journal of Trade,
Economics and Finance, 2(2).
?
Shaik, S, Sameera, S, AFiroz, K, C. (2015) “Does
Goods and Services Tax (GST) Leads to Indian Economic Development?” IOSR
journal of business and management. 17(12), pp. 1-05.
?
Kamna S, Verma R (2014), “Good and Service Tax –
Panacea For Indirect Tax System In India”, “Tactful Management Research
Journal”,12(10)
[1] Vasanthagopal, .R (2011), “GST
in India: A Big Leap in the Indirect Taxation System”, International Journal of
Trade, Economics and Finance, 2(2).
[2] Sehrawat, M, Dhanda U, “ GST
in India – Akey tax reform” International journal of researchGranthalya.3(12),
pp. No.133-141.
[3] Sehrawat, M, Dhanda U, “ GST
in India – Akey tax reform” International journal of researchGranthalya.3(12),
pp. No.133-141.
[4] Poddar S, Ahmad E (2009), GST
Reforms and Intergovernmental Considerations in India, Working Paper
No.1/2009-DEA, Department of Economic Affairs Ministry of Finance, Government
of India
[5] Borec T. and Merz M. and
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Article Information
IMPACT OF GST ON INSURANCE INDUSTRY BY:- SHIVAM PANDEY & TEJAS SINGH
Authors: SHIVAM PANDEY, TEJAS SINGH
- Journal IJLRA
- ISSN 2582-6433
- Published 2024/04/10
- Issue 7
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International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
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