Insurance CEOs meet government to discuss latest GST changes
Insurance company CEOs are sitting down with government officials today (September 10, 2025) to talk about the latest GST tax updates.
The big news? From September 22, 2025, individual life and health insurance policies—as well as reinsurance costs—will not be charged GST.
While this sounds good on paper, insurers have already flagged some concerns in a letter to the Finance Ministry and the Central Board of Indirect Taxes and Customs (CBIC) on September 9.
Insurers seek clarity on input tax credits and commissions
Insurers want these GST changes to only apply going forward—not retroactively—and they're asking for input tax credits on renewal premiums too.
They've also highlighted that most policy pricing already factors in tax credits for reinsurance and commissions, which make up nearly 90% of their expenses.
Right now, commission expenses still get taxed, creating higher costs and some unclaimed credits.
Analysts think these rule tweaks could hit health insurers' profits and put pressure on new business for life insurers, so this meeting is all about finding a fair fix.