All users will also get the benefit of input credit on GST charged in the insurance premium
The world has not yet emerged from the crisis of the worldwide pandemic Corona. It’s made an unprecedented impact on people everywhere on the planet. During this point, the importance of insurance has increased among the people. People have started seeing it as a necessary investment. However, thanks to the payment of tax premiums paid by taxpayers, tax write-off is achieved. But if the deduction achieved thanks to the payment of premium is increased by a minimum of another 50 percent, then the reach of insurance within the country will increase.
Covid-19 has created the necessity to form insurance mandatory for all employees. Insurance is important for the protection of their health and life. So we believe that from here we will get a robust foundation to extend the reach of insurance. In our view, the GST charged on the insurance premium paid by corporate companies should be decreased. Input decrease should tend on GST charge on purchase of group insurance cover. However, there’s no provision within the current GST law.
It would convince be an enormous step if the government included the value of vaccination provided by the people under the tax write-off on health check-ups. With this, insurance won’t only save the citizens and taxpayers from problems but also reduce their tax burden.
GST charged on insurance
India may be a country with a young population, where people need insurance. If the government encourages buying a policy, then people will have extra money left in their hands, which they’re going to be ready to spend. People that work or do business will save their income because the expenses incurred on diseases, hospitalization, and health-related problems are going to be saved thanks to insurance. The insurance covers medical expenses.
When people have extra money to spend, it’ll also attend the treasury of the government. The government is going to be ready to raise more revenue through indirect taxes on these expenses.