Input Tax Credit issue: Insurers to charge 18% GST on agents’ commission

Two weeks after the government reduced the Goods and Services Tax (GST) on health insurance premiums from 18 per cent to zero, insurers have moved to impose an 18 per cent GST on the commissions paid to agents and distributors. The move, meant to offset losses from the withdrawal of input tax credit (ITC), has come as a major blow to insurance intermediaries across the country. Industry executives…