The article explains that the GST Council’s exemption of individual health and term insurance policies effective 22 September 2025 did not lower premiums because insurers lost the ability to claim input tax credit on operating expenses, making the exemption cost‑neutral. It outlines insurers’ options—absorbing costs, raising premiums, or recalibrating commissions—and calls for structural fixes such as partial ITC restoration and concessional GST rates.
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GSTZen · about 3 hours ago
India’s GST e-invoice and e-way bill system will enforce new API validations from 1 August 2026. Ship-to GSTIN becomes mandatory, cannot match Bill-to GSTIN, and must align with state codes. ERP users must update master data, payloads, and handle URP for unregistered consignees.
News On Air · 4 days ago
India's Delhi government has reduced the VAT on aviation turbine fuel from 25% to 7%. The concessional rate will apply for six months, starting from 19 April 2026.
LiveLawBiz · 5 days ago
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GSTZen · 5 days ago
India's GST framework allows businesses to claim Input Tax Credit on hotel accommodation when the stay is for business purposes. Eligibility depends on valid tax invoices, GST paid, and compliance with CGST Act sections 16 and 17(5). A minimum room rate of 7500 is required for ITC eligibility.
Indian Television Dot Com · 9 days ago
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A2Z Taxcorp · 20 days ago
The article explains that while GST was designed to eliminate cascading tax and enable seamless input tax credit (ITC), the reality has become a compliance-driven process. ITC eligibility now hinges on invoice matching, GSTR‑2B reconciliation, Rule 36(4), Section 16(2)(aa) restrictions, and the Invoice Management System (IMS), making credit availability conditional on supplier filings and compliance data. Businesses face working‑capital pressure and litigation due to delayed or denied ITC.
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Key Takeaways
Effective 22 September 2025.
Because insurers lost the ability to claim input tax credit on GST paid on operating expenses, making the exemption cost‑neutral.
They could absorb higher costs, raise base premiums, or recalibrate commissions and pricing, often requiring regulatory approval.
Partial ITC restoration, concessional GST rates instead of full exemption, carve‑outs for essential costs, and higher tax deductions under Sections 80C and 80D.
Primary source
Read the full article at A2Z TaxcorpThis summary was published on VATfaqs.com on 19 January 2026. It relates to VAT developments in India. The original source is A2Z Taxcorp.
