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Life insurance council will propose a zero rate for insurance to the GST Council

Life insurance council will propose a zero rate for insurance to the GST Council
The Life Insurance Council will propose a zero rate structure with respect to the Goods and Services Tax (GST) for insurance policies to the GST Council. The insurance industry has been asked to levy 18% rate under GST to the end consumers. 

The industry had proposed a 0% GST which is the lowest tax bracket but the GST council ignored it completely. As of now, the customers who buy insurance policies have to pay a 15% Service Tax including cess. The insurance industry was expecting this to be now revised to 5% rate structure under GST. 

There is a fear among the insurance companies that a high tax slab will impact the business significantly in the near term. And hence the life insurance council is again making a presentation to the Council to get a lower tax rate.

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