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Chief executives of life and general insurance companies are scheduled to meet Insurance Regulatory and Development Authority of India (IRDAI) Chairman Ajay Seth on Wednesday (September 17), according to sources. This will be the first such industry-level interaction since Seth assumed charge on September 1.
The upcoming meeting may come against the backdrop of recent deliberations between insurers and the Finance Ministry over Goods and Services Tax (GST) changes.
On September 10, insurance company CEOs met ministry officials to seek clarity on the applicability of the changes announced by the GST Council earlier this month.
During those discussions, insurers urged the government to make the applicability of the new GST norms prospective rather than retrospective. They also sought input tax credit (ITC) benefits on renewal policies. ITC enables businesses to offset taxes paid on inputs against their overall tax liability. Sources indicated that Finance Ministry officials heard the representations and acknowledged the industry’s concerns.
On September 3, the GST Council decided to exempt individual life and health insurance policies, along with reinsurance costs, from GST, with effect from September 22. The changes are expected to have a significant impact on policy pricing, claims, and compliance for insurers.
The upcoming meeting may come against the backdrop of recent deliberations between insurers and the Finance Ministry over Goods and Services Tax (GST) changes.
On September 10, insurance company CEOs met ministry officials to seek clarity on the applicability of the changes announced by the GST Council earlier this month.
During those discussions, insurers urged the government to make the applicability of the new GST norms prospective rather than retrospective. They also sought input tax credit (ITC) benefits on renewal policies. ITC enables businesses to offset taxes paid on inputs against their overall tax liability. Sources indicated that Finance Ministry officials heard the representations and acknowledged the industry’s concerns.
On September 3, the GST Council decided to exempt individual life and health insurance policies, along with reinsurance costs, from GST, with effect from September 22. The changes are expected to have a significant impact on policy pricing, claims, and compliance for insurers.
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