India’s biggest tax reform after independence, Goods and Service Tax (GST) was launched in the midnight on June 30 in the August Central Hall by Prime Minister and President of India. GST, which got roll-out from July 1, is going to impact several items and services including which is insurance and mutual funds.
According to the GST Council released data, financial service industry will come under the slab of 18% in the GST regime. The new tax implementation will be going to make mutual funds little bit expensive.
Archit Gupta, Founder & CEO of ClearTax.com said: “Both general insurance and life insurance premiums will hike up by a small amount due to the increase in tax rates”.
Before the GST implementation, the tax on financial services was 15% which is 3% less from now. Due to this increase in the tax rates, the returns will get affected.
To discuss the proper implementation of GST, the GST Council will hold a meeting on August 5.