Zero-Rated GST Demand by Insurance Brokers (IBAI)
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.
| Regime | Output GST | ITC on costs |
|---|---|---|
| Exempt | None | Blocked |
| Zero-rated | None | Allowed |
Exam angle
- ITC = input tax credit; exports and deemed exports are zero-rated now.