In protection products, commissions initially range between 35% and 40% before tapering off, averaging about 5-6% over time. On top of this, insurers incur about 10% in other expenses. Currently, service tax of around 2% on such costs is offset through input tax credits. If GST exemptions remove that credit, insurers will have to bear the additional expense.
DGGI set to fire up GST recovery drive against gaming firms after Supreme Court’s backing
The Directorate General of GST Intelligence will now aggressively pursue tax recovery from online gaming companies after the Supreme Court upheld a 28% GST levy