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Is it possible to add a GST number to your car insurance policy?

 



Is it possible to add a GST number to your car insurance policy?

GST is a unified tax system in which the Indian government charges fees and collects taxes from state governments on the supply of goods and services

Table of contents
Need to include your GST number in your car insurance policy?
Impact of GST on car insurance policies
1. Increase service tax
2. Extra high-end
3. Increases the number of options available
Take away

GST is a uniform tax system in which the Indian government charges fees and collects taxes from state governments on the supply of goods and services, including central selective fees, and the sale of Interstate products, service tax, VAT, income tax, luxury tax, purchase tax. For vehicle insurance, which falls under the GST category, the sale of goods and services is taxed at a fixed rate of 18 per cent. As a result of the GST, the cost of car insurance increased by 3%, and policyholders pay a slightly higher premium to offset expenses. That's just one aspect of how the GST affects car insurance, but it's an important aspect. We'll take a look at how it affects car insurance over time in this article.


Need to include your GST number in your car insurance policy?

Yes, your GST number can be included in your car insurance policy. To get the GST number added to your car insurance policy, just contact your car insurance provider's customer service department or insurance broker. You can add your GST number to your car insurance coverage. Just contact your car insurance provider's customer service department or insurance broker to get the GST number added to your car insurance policy. The implementation of the GST Act has simplified and standardized the entire indirect tax structure.


Impact of GST on car insurance policies

The table below shows how the GST affected car insurance policies:


1. Increase service tax

Car insurance is subject to a higher service tax since the establishment of the GST. Previously, the service tax was 14 per cent, plus 0.5 per cent of Krishi Kalian Sis and 0.5 per cent of Swash Bharat Sis. This service tax rate has now been raised to 18%, resulting in a 3% increase in the overall tax rate. Even when inflation and other factors are taken into account, this has had a significant impact on premium rates.


2. Extra high-end

Vehicle insurance prices may be higher as a result of GST than in the past. Car insurance plans are now required to pay GST, and the service tax rate for vehicle insurance has also been raised to take into account increased calculation and administrative costs. The service tax on car insurance premiums was previously 15%, however, recently raised to 18%. The amount of premium that future car insurance customers will have to pay has increased along with the amount of tax.


3. Increases the number of options available

Many car insurance providers now offer more features at a higher price as a result of the GST inclusion of car insurance. A range of additional services are now available, including increased coverage, online savings, and improved customer management. In addition, in order to improve customer service, many car insurance companies provide a cashless garage service to their customers.


Take away

The most important consequences of GST on car insurance coverage are listed below. Although you may have to pay a higher price for vital services, remember that with the higher price come better services you don't have before. Due to the high cost of vehicle insurance, it is not smart to avoid getting them. When purchasing a car, you should make sure it will provide you with stable financial stability in the event of damage to the body or parts of the vehicle.

Read also: Why Should You Buy Long-Term Car Insurance?

Disclaimer: This article has been released in the public interest and is intended for informational purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should conduct further research or consult an expert in this regard.

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