Insurers to pass full GST benefit to customers
What's the story
Insurance companies are gearing up to implement the new Goods and Services Tax (GST) rates from Monday. Industry insiders have revealed that these companies will pass on the entire reduction in GST to customers, without any changes in product pricing for now. The move is expected to slightly increase demand as many customers had delayed purchases awaiting the new tax regime.
Implementation status
Some may initially offer only their best-selling products
While some insurers are fully prepared with their entire product range updated to the new GST rates, others may only offer their best-selling products at first. This is until they can align all their offerings with the revised tax structure. The move comes as part of a broader industry effort to comply with the new tax regime and continue providing affordable insurance options for customers.
Margin concerns
Insurers concerned about potential impact on margins
Despite the move to pass on the GST cut, insurers are wary that the withdrawal of input tax credit could affect their margins over time. The change in tax structure is inferred to be part of a wider effort by the government to simplify and streamline taxation across various sectors. However, its long-term implications on businesses and consumers remain to be seen.