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Zero-Rated GST Demand by Insurance Brokers (IBAI)

7 November 20251 min read
ECONOMYZero-Rated GSTDemand byInsurance Brokers(IBAI)7 November 2025safalsetu.com

Why in the news

Brokers said the GST exemption raised costs and could push up premiums, so they sought zero rating.

Key facts

  • IBAI is the body behind the demand.
  • Zero rating would stop cascading tax and protect affordability.
  • Within India it needs a major policy shift and may alter Centre-state revenue sharing.
RegimeOutput GSTITC on costs
ExemptNoneBlocked
Zero-ratedNoneAllowed

Exam angle

  • ITC = input tax credit; exports and deemed exports are zero-rated now.

Test yourself

1. Which body urged a zero-rated GST structure for insurance products?

IBAI made the demand.

2. Under zero-rated GST as described for insurance, what is allowed?

No GST on output, yet input tax credit can be claimed.

3. At present, zero rating with input tax credit is limited to which supplies?

The notes say it is limited to exports and deemed exports.