**Insurers to Pass Full GST Benefit to Customers**
*By Akash Pandey | Sep 21, 2025, 06:47 PM*
Insurance companies are preparing to implement the new Goods and Services Tax (GST) rates starting Monday. According to industry insiders, insurers will pass on the entire GST reduction directly to customers without altering product prices for the time being.
This initiative is expected to boost demand slightly, as many customers had postponed their insurance purchases in anticipation of the new tax regime.
**Implementation Status**
While some insurers are ready with their entire product portfolio updated to reflect the new GST rates, others may initially offer only their best-selling products. This phased approach will continue until all offerings are aligned with the revised tax structure.
This move is part of a broader industry effort to comply with the updated tax regulations while maintaining affordable insurance options for consumers.
**Margin Concerns**
Despite passing on the GST cut, insurers remain cautious about the potential impact on profit margins due to the withdrawal of input tax credit. The revised tax structure is seen as part of the government’s wider strategy to simplify and streamline taxation across sectors.
However, the long-term effects of these changes on both businesses and consumers are yet to be fully understood.
https://www.newsbytesapp.com/news/business/insurers-to-pass-on-gst-reduction-to-customers/story