India’s general insurance sector is poised to benefit significantly from a recent GST ruling that will see the sector receive Rs 18,000 crore. This substantial financial boost comes from the government’s decision to refund the accumulated input tax credit (ITC) on services consumed by insurers.
The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular clarifying that insurers are eligible to claim a refund of the unutilized ITC on services such as advertising and business support. This move is aimed at addressing liquidity issues faced by the general insurance sector, providing much-needed financial relief.
Industry experts have welcomed this decision, highlighting that the refund will improve the financial health of insurance companies. This improvement is expected to translate into better products and services for customers, enhancing the overall competitiveness of the sector.
