**Insurers to Pass Full GST Benefit to Customers**
*By Akash Pandey | Sep 21, 2025, 06:47 PM*
Insurance companies are gearing up to implement the new Goods and Services Tax (GST) rates starting Monday. Industry insiders have revealed that these companies will pass on the entire reduction in GST to customers, without any changes in product pricing for now. This move is expected to slightly boost demand, as many customers had delayed purchases in anticipation of the new tax regime.
**Implementation Status**
While some insurers are fully prepared with their entire product range updated to reflect the new GST rates, others may initially offer only their best-selling products. These companies plan to expand their updated offerings gradually as they align all products with the revised tax structure.
This step is part of a broader industry effort to comply with the new tax regime and continue providing affordable insurance options for customers.
**Margin Concerns**
Despite passing on the GST cut, insurers remain cautious about potential impacts on their margins. The withdrawal of input tax credit could affect profitability over time. The change in tax structure is widely seen as part of the government’s effort to simplify and streamline taxation across various sectors.
However, the long-term implications of this shift for businesses and consumers alike remain to be seen.
https://www.newsbytesapp.com/news/business/insurers-to-pass-on-gst-reduction-to-customers/story