Insurance companies and IRDAI likely to meet CBIC today to discuss GST issues

Representatives from insurance companies and the Insurance Regulatory and Development Authority of India (IRDAI) are likely to meet the Central Board of Indirect Taxes and Customs (CBIC) on Friday (September 12), sources told CNBC-TV18.

The CBIC is expected to tell insurers to pass on the benefits of the recent Goods and Services Tax (GST) exemption on life and health insurance policies to consumers. Officials are also likely to ask IRDAI to closely monitor that the benefits reach policyholders.

Earlier this week, insurance company chief executives also met Finance to discuss the recent GST changes, according to sources. During the meeting, insurers requested that the applicability of the 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.

On September 3, the GST Council approved an exemption from the 18% GST on life and health insurance policies. The exemption applies without input tax credit (ITC) and inversion benefits.