Insurance CEOs meet Finance Ministry officials, raise GST concerns

Insurance company chief executives met Finance Ministry officials on Wednesday (September 10) to discuss recent Goods and Services Tax (GST) changes, according to sources.

During the meeting, insurers requested that the applicability of GST changes be made prospective rather than retrospective. They also sought input tax credit (ITC) benefits on renewal policies. ITC allows businesses to set off taxes paid on inputs against their tax liability.

Finance Ministry officials heard the representation from the industry and acknowledged the demands, sources said.

The meeting followed the GST Council’s September 3 decision to exempt individual life and health insurance policies, as well as reinsurance costs, from GST with effect from September 22.

Insurance CEOs are scheduled to meet the Central Board of Indirect Taxes and Customs (CBIC) on September 12 to continue discussions on these issues.

Separately, the Life Insurance Council is also expected to meet the chairman of the Insurance Regulatory and Development Authority of India (IRDAI) soon to seek support before escalating the matter to the government, sources said.