Claiming that insurance industry has been heavily hit by the imposition of 18 per cent GST, the All India Insurance Corporation Employees Union on Wednesday said that about 22 lakh people have signed petition to Prime Minister opposing GST on insurance premiums.
The new GST system has brought additional burden also by taxing new areas, the union joint secretary M Girija told.
Stating that penalising the late fee was not justifiable, Girija said that the new areas of servicing have also been brought under tax net and service charges payable for nominations, assignments and issuance of duplicate policies were added with loading of 18 per cent GST.
The levying of GST has brought the danger to the next level of denying the role played by LIC and Public sector general insurance companies, she said.
Stating that the union has launched a signature campaign among the policy holders and the general public demanding the government for withdrawal of GST on insurance premiums and insurance related services, Girija said that more than 22 lakh people signed the petition to the prime minister.