Input Tax Credit

Making insurance products more affordable shows that the govt views the sector as essential as food, says Irdai chief Ajay Seth

Regulatory shocks and withdrawal of a tax benefit slowed down growth, nudging firms to focus on affordability, efficiency and chasing more customers

Deepak Sood says zero GST on life and health insurance has sparked strong growth, with demand set to accelerate in H2FY26 as the industry pushes for deeper penetration and better distribution

Niva Bupa expects a modest 50-60 basis point hit from GST-related ITC loss but aims to offset it through higher policy sales, revised distributor commissions, and cost efficiencies

HDFC Life sees 50% surge in retail term sales after GST cut; CEO Vibha Padalkar outlines margin recovery, product mix shift, and strategies to offset ITC impact

An inverted duty structure arises when the tax rate on inputs is higher than that on finished goods, leading to accumulation of unutilised ITC

The CBIC has notified changes to the annual GST return form GSTR-9, making the reporting of Input Tax Credit (ITC) more comprehensive. The Central Board of Indirect Taxes and Customs (CBIC) on September 17 notified changes to the Central GST (CGST) rules, which will come into effect on September 22 and apply to annual returns filed for the 2024-25 fiscal. GST registered Taxpayers with aggregate turnover above Rs 2 crore are required to file GSTR-9. AMRG & Associates Senior Partner Rajat Mohan said the government has revamped the annual GST return (Form GSTR-9). "Revised structure of form makes it far more detailed, with new tables covering reversals under Rules 37, 37A, 38, 42 and 43, re-claims in subsequent years, transitional credits, import-related ITC, and auto-populated mismatches," Mohan said. Professionals and corporates will need to wait for the revised forms and utilities from GSTN before implementing these changes in practice. "Going forward, this measure underscores a

Industry body Aimed says proposed balanced reforms could help reduce healthcare costs for consumers

The CBIC has clarified that taxes paid on inputs like brokerage and commission for individual life or health insurance policies cannot be claimed as ITC

The circular also stated that post-sale discounts given by manufacturers to dealers would not be treated as consideration for services

Businesses say they may find it difficult to reduce prices to the full extent of GST reduction because they may have paid higher input taxes on stocks lying with them. For that they won't be refunded.

Suggest allowing unused ITC for SGST payments, Customs duty offsets, or tradable scrips

While the market was anticipating a cut in GST rates for term and health policies, analysts at JM Financial said, the exemption on savings-oriented life products came as a positive surprise.

The PAC said the inconsistencies highlight serious inefficiencies in the GST system's data validation and reconciliation processes, as GSTR-9 is auto-populated from GSTR-3B

A system that allows buyers to pay taxes directly to the government while paying would enhance trust, improve tax compliance, and accelerate tax collection

Industry bodies FICCI and Assocham have demanded that real estate developers should be allowed to claim Input Tax Credit (ITC) under the Central Goods and Services Act (CGST) on commercial assets constructed for leasing purposes. The associations have written letters to the finance ministry and have urged the latter to permit availing of the ITC where the immovable property is constructed for the provision of leasing services. They have argued that the potential revenue impact would not be high by allowing ITC and instead, this would help maintain the credit chain, besides spurring growth in the real estate sector and the overall economy. The representations come in the backdrop of a recent Budget proposal relating to a retrospective amendment to the CGST law, which experts feel will override the Supreme Court ruling related to the ITC claim on leased assets. Market consultants are of the view that this move is likely to adversely impact real estate companies seeking input tax cred

Allows input tax credit on inputs and input services used for setting up passive infrastructure

Overturns 2014 Bombay HC ruling classifying infrastructure items as non-capital goods

LGES said it would have booked an 18 billion won operating loss in the quarter without a tax credit received under the US

Exception for commercial buildings meant for renting, leasing purposes