Can You Add GST Number To Your Car Insurance Policy?

The Products and Services Tax (GST) is a unified tax regime in which the Indian government levies and collects taxes from state governments on the supply of goods and services, such as central excise duty, interstate sale of goods, service tax, value-added tax, entrance tax, luxury tax, and purchase tax. The sale of goods and services is levied at a set rate of 18 percent for car insurance, which falls under the services category of GST. The cost of auto insurance has increased by 3% as a result of the GST, and policyholders are paying a little higher premium to cover the cost. While this is only one facet of how the GST has impacted vehicle insurance, it is an important one. In this post, we'll look at how it has influenced vehicle insurance throughout time.

Add GST Number To Your Car Insurance Policy?

Yes, you may include your GST number in your auto insurance coverage. Simply call the customer service department of your motor insurance company or an insurance broker to have the GST number added to your vehicle insurance policy. Your GST number can be added to your vehicle insurance policy. To get the GST number added to your auto insurance policy, just contact the customer service department of your motor insurance provider or an insurance broker. The implementation of the GST Act simplified and harmonized the whole indirect tax structure.

Impact of GST On Car Insurance Policies

The following table will explain how the GST has influenced vehicle insurance plans:

1. Service Tax Increase 

Since the implementation of the GST, automobile insurance has been subjected to a higher service tax. Previously, the service tax was 14 percent, with 0.5 percent Krishi Kalyan cess and 0.5 percent Swachh Bharat Cess added. This service tax rate has now been raised to 18%, resulting in a 3% rise in overall tax rates. This has had a significant influence on premium rates, even when inflation and other variables are taken into account.

2. More High-End 

The GST may result in higher vehicle insurance premiums than previously. According to the new rules, automobile insurance plans must pay GST, and the rate of service tax for car insurance has also been raised to account for the increase in computation and administrative expenses. Previously, the service tax on vehicle insurance premiums was 15%, but it has recently increased to 18%. As the amount of tax has risen, so has the amount of premium that future vehicle insurance buyers will have to pay.

3. Increases the Number of Features 

As a result of the GST's inclusion of auto insurance, numerous car insurance providers are now offering greater features at a higher charge. You may now take advantage of a variety of new services, including expanded coverage, online savings, and better customer management. In addition, several vehicle insurance companies offer a cashless garage service to their customers in order to improve customer service.

Take Away

These are the most significant effects of the GST on vehicle insurance coverage. While you may have to pay a greater premium for essential services, keep in mind that with increased price comes superior services that you did not have previously. It is not a good idea to avoid purchasing auto insurance due to its high cost. When you acquire a car, you should ensure it since it will provide you with steady financial security against any damage to the vehicle's body or parts.

You may also like to read - Everything About Compulsory Personal Accident Cover In Car Insurance 

Top Add-on Covers You Must Have

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.