GST reforms: No input tax credit on commission for individual health, life insurance policies from Sep 22; insurers to bear cost

Starting September 22, insurers can’t claim input tax credit (ITC) on GST paid for commissions on individual health and life policies, as clarified by CBIC. This aligns with the new GST structure exempting individual policy premiums. Service providers in other sectors with 5% GST without ITC will also face similar ITC reversal requirements, impacting their cost structures.