News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
GST - Goods and Services Tax »
 States willing to borrow want process to start soon GST shortfall
 IRDAI seeks GST rate cut from 18% to 5% on life and health insurance premiums
 What the Centre and state govts disagree on GST compensation row
 Govt looking at GST rate cut for automobile sector Covid-19 impact
 National Human Rights Commission, INA, New Delhi
 A GST cut may prove to be a shot in the arm for two-wheeler companies
 What to expect from GST Council meet tomorrow States financial crisis likely at core of discussion
 GST set to meet, Sushil Modi says Centre morally bound to pay states
 Interest to be levied on cash component of GST liability: CBIC
 How to do GST registration through Aadhaar authentication
 Step-by-step guide to GST registration through Aadhaar authentication
 How to apply and important points to note while opting GST registration through Aadhaar authentication

IRDAI seeks GST rate cut from 18% to 5% on life and health insurance premiums
September, 11th 2020

To help the insurance sector provide basic financial protection to the people, Insurance Regulatory and Development Authority of India (IRDAI) has approached the Finance Ministry again with a request to cut GST rates on life and health insurance premiums.

The regulator pointed out the need has risen as people have realised the importance to having cover for life and health insurance amid the pandemic, which is why both products need to be made more affordable, sources told CNBC-TV18.

"Despite restrictions in face-to-face interaction due to the pandemic, the insurance business has performed beyond expectations, where digital platforms have made it easier for people to obtain insurance… understanding the need for giving impetus to the insurance sector for providing financial protection during the time of distress, the IRDAI chairman has suggested for considering lowering GST on life and health insurance premiums to 5 percent from the current 18 percent," a source said, who didn't wish to be identified.

Nonetheless, this is not the first time that IRDAI has moved the proposal for the government's consideration. Time and again IRDAI has been pitching for a rate cut, once it had sought a reduction to 12 percent and once it had proposed that it be reduced to 5 percent, but to no avail.

It is not an easy task to get a rate change passed by the GST Council, as any such reduction needs to cross several milestones for it to reach the GST Council for a final acceptance.

For a proposal to be approved, recommendations or suggestions are first given to the GST Council nominated fitment committee, which has representatives from both sides – Centre and the states. The Centre-state officers led fitment committee then takes the proposal through detailed deliberation and after lengthy discussions, it makes final recommendations to the GST Council.

The GST Council then goes through the recommendations of the fitment committee and decides on approving it or not.

The GST Council's 42nd meet is scheduled for September 19, where multiple issues are expected to be looked into, however, a formal agenda is yet to be finalised. Although, sources did not confirm whether the proposal is part of the September 19 meeting, the sector would be keenly watching if it makes it to the agenda in this meet or the next, and whether it gets struck down yet again or is given the green signal.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting