September 6, 2017
The insurance industrylaiming has been hit hard by the imposition of 18 per cent GST, according to All India Insurance Corporation Employees Union.
A petition signed by 22 lakh people has been submitted to the Prime Minister opposing GST on insurance premiums, union leaders said today.
The new tax regime has brought new areas under it, union joint secretary M Girija told reporters here. Penalising late fee was unjustifiable as penalty was already being collected, Girija said ladding new areas of servicing were being brought under the tax net.
Service charges payable for nominations, assignments and issuance of duplicate policies also attracted an 18 per cent GST.
These measures would affect the basic guidelines of insurance reaching the last man of the country and would also negate the responsibility of the state to provide social security to its citizens, she said.
It was in this backdrop that the union launched a signature campaign among the policy holders and the general public demanding withdrawal of GST on insurance premiums and insurance related services, Girija said DMK working president M K Stalin, VCK leader Thirumavalavan, CPM secretary, G Ramakrishnan and CPI secretary, R Mutharasan were signatories.