Agents and industry associations are likely to take up the GST-related Input Tax Credit (ITC) issue
Agents and industry associations are likely to take up the GST-related Input Tax Credit (ITC) issue with IRDAI and the Finance Ministry, after private insurers slashed distributor pay-outs by 15–18 percent to offset the loss of ITC.
Agents and industry associations are likely to take up the GST-related Input Tax Credit (ITC) issue with IRDAI and the Finance Ministry, after private insurers slashed distributor pay-outs by 15–18 percent to offset the loss of ITC.
Echoing these thoughts, “this is not a small change. It directly cuts into the working capital of agencies, brokerages, and individual advisors. Many small and independent operators will struggle to stay viable,” said Prashant Mhatre, President, General Insurance Agents Federation Integrated.
He added that forcing distributors to pay GST from their commissions will reduce take-home income and morale, especially in smaller towns and rural markets. “If our earnings are cut, motivation will fall, and access to insurance will shrink. This is against the Prime Minister’s vision of Insurance for All by 2047,” he said.
Strict cost controls and tighter regulatory expense caps maybe prompting private insurers to reduce distributor pay-outs by 15-18 percent to offset the loss of ITC following the GST exemption on life and health insurance premiums.
- October 13, 2025
- Press Release : IRDIA
- 9:09 am