Life Insurance Council and LIC Seek Relief from Recent GST Changes

The Life Insurance Council and LIC are leading efforts to address recent GST changes in India's insurance sector. Key demands include prospective implementation of GST changes, input tax credit on renewal premiums, and exemption of commission expenses from GST. The current GST structure has created an inverted duty situation, leading to unclaimed credits and higher costs for insurers. The impact varies across different insurance segments, with health insurers facing higher loss ratios and life insurers experiencing pressure on new business margins. The industry plans to engage with IRDAI before approaching the government for relief.