By Admin 
Insurance Policy Premium: The government has taken the removal of GST on health and life insurance policy. From the next 22 September, GST will be completely finished at insurance premium. Earlier, GST was used at the rate of 18 percent, but now people will be able to buy GST policy without the new rule. Now the confusion is about this. Since the benefit of GST exemption on insurance premium is going to be available from September 22, people feel that GST will not have to be paid after this date or on this day, GST will not have to be paid, whereas in reality it is not so.
If the renewal date of the policy is before September 22, then you should pay the payment without any dilemma. If you do not do so, you will do your own harm. You can be deprived of many benefits like no-calm bonus, renewal discounts. The renewable date of the policy has been released before 22 September and by the insurance company, then you will have to pay GST on the premium according to the old rule, even if you pay after 22 September to save GST. However, if the invoice is generated on or after 22 September, then you will be able to avail discount on GST.
From September 22, policyholders will be completely free from GST on the premium of health and life insurance. This will reduce the burden of spending to a great extent. At a premium of Rs 1,000 where now one has to pay Rs 1,180 with GST. At the same time, now only 1,000 rupees will have to be paid with the removal of GST. However, it has a screw. Insurance companies with GST reforms will no longer be able to claim input tax credit (ITC) on many of their operational expenses on agent commissions, reintegrations and advertisements. With this, some insurance companies can increase their base premium slightly, which will not give full benefit of tax exemption.
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