The Goods and Services Tax (GST) Council has set the rates for services at 18 percent, higher than the current tax incidence of 15 percent. Come July 1, will the premiums on your insurance plans will cost you more? On BloombergQuint’s special series, GST Countdown, we spoke to Kedar Parkhi, chief financial officer at IDBI Federal Life insurance.
Here are edited excerpts from the conversation.
Did the 18 percent rate come as a surprise to the industry or was it anticipated?
The finance minister was supposed to set rates at multiple levels and we were expecting the rate to be either 12 or 18 percent and we were ready for both. We are here with 18 percent now.
