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IRDAI seeks GST rate cut on life and health insurance premiums

  • Oct 12, 2020 | Divita S Gupta

IRDAI seeks GST rate cut on life and health insurance premiums

The Insurance Regulatory and Development Authority of India (IRDAI) has requested the Finance Ministry to implement a GST rate cut on life and health insurance premiums. This request has been made with the agenda that a rate cut will encourage the purchase of insurance plans, especially as life and health are in jeopardy due to the pandemic. The IRDAI chairman, in a statement said that they have suggested a rate cut as digital mediums have made it easy for purchasing insurance but the high GST rate of 18% tends to discourage the purchase. A lower GST rate of 5% will encourage more customers to secure their families with insurance. This is not the first time that the IRDAI has approached the finance ministry seeking a rate cut. They had earlier asked that the rate be cut down to 12%. The 42nd GST council is scheduled for the first week of October 2020 and a discussion around the proposal made by the IRDAI could be one of the points of agenda.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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