With the levy of Goods and Service Tax (GST) health and other insurances likely to be dearer as hike of two to four percent has been done in by the Government coming into force with effect from July 1, the circulars released by various insurance company to stake holders claimed. The companies would now replace the Service tax (ST) with the GST and also ending the Swachh Barat Cess and Krishi Kalyan Cess, circular said.
An SMS was issued to all the police holders and agents with revising the tax which is hiked in different slabs. The Life Insurance Corporation has revised the Term and Heath products and ULIP charges from 15 percent including present service tax rates, SBC and KKC TO 18 per cent on the premium. NB premium including Single Premiums of Life and Pension products and First year Premium of Annuity products from 3.75 percent ( SBC 0.125 PC AND KKC 0.125 PC ) to 4.50 percent.
The renewal premium 1.857 per cent ( SBC 0.0625 PC and KKC 0.625 PC) TO 2.25 PC and Single premium of Annuity products from 1.50 P C (SBC 0.95 PC AND KKC 0.05 PC to 1.80 PC. Similarly the GST have been enhanced on the Telecom services as the 18 percent GST would be levied on the phone bills replacing 14 percent ST and 0.50 PG SBC and KKC.