The Ministry has announced several revisions to the Goods and Services Tax (GST) framework, primarily impacting various service sectors. Effective September 22, reinsurance services will be fully exempted from GST. Concurrently, insurance companies will no longer be permitted to claim input tax credit (ITC) on GST paid for inputs such as commissions and brokerages related to individual health and life insurance policies. This adjustment stems from the exemption of reinsurance services, necessitating a reversal of ITC on associated inputs.
Furthermore, services related to beauty and physical well-being will be subject to a mandatory 5 percent GST rate without the option to claim ITC. Service providers in this sector are not permitted to charge 18 percent with ITC. Additionally, delivery services facilitated by e-commerce operators, including platforms like Zomato, Swiggy, Blinkit, and Zepto, will incur an 18 percent GST on delivery charges, also commencing September 22.
Source: indianexpress.com