Impact of Goods and Service Tax on India’s Insurance Sector

Impact of Goods and Service Tax on India’s Insurance Sector

Mr. Krishna Arun Jamdhade, Dr. Hares A Qureshi

Dr. Babasaheb Ambedkar Marathwada University, Aurangabad

ABSTRACT

Government of India has implemented a new indirect tax system - GST from 01.07.17, GST is an indirect tax for the entire country, making India a unified common market. The goods and service tax (GST) is a ground-breaking reform for the Indian economy`s indirect tax regime. GST have changed the tax architecture between the state and the centre. GST is a taxation procedure for goods and services transported from one destination to others. GST is a value added tax, which have eliminated the cascading effect or double-taxation effect on the cost of goods and services down the value chain. This paper is designed to provide an overview of the impact of GST on insurance industry as well as policyholders. This paper is prepared using exploratory research method using secondary data. The study reveals that the insurance industry has not been untouched by its influence. It is affecting the insurance industry as well as the policy holders. Finally, it tries to find a middle ground between the Center and the states and to implement the GST code properly in India.