GST 2.0: Will it make low -insurance prices and cars at reasonable prices and pay the growth of GDP higher?

The proposed GST 2.0 reform in India can increase consumer spending, demand to rule across the main sectors, and significantly reduce compliance burdens for companies.

For the insurance sector, Tarun Chuj, the administrative director and executive director of the Bajaj Allianz Life Insurance Company, said in an exclusive conversation with Today TV, “The proposed reduction or exemption from GST on life and health insurance will benefit the customer directly,” said Tarun Chog, Managing Director and CEO of Bajaj Allianz Life Insurance, said in an exclusive conversation with Today TV.

However, Chouge also warned that the final impact on insurance premiums depends on how to treat input tax credit under the new structure. “If insurance companies lose the entrances to reinsurance and commissions, you may need to adjust the basic installments.”

In his opinion, the commodity and services tax can work 5 % with input credits better than complete exemption for this industry. However, it will be a rate less or much better exemption than the current 18 %, as it will help expand the country’s insurance penetration.

When asked if customers should delay policies to wait for fewer installments, he advised a jogging against them. “It is very early. Vergings of commodity and services will not occur overnight – policy systems and conditions need time to align.” He added: “Insurance is a long -term product. Keep paying your installments. The ability to withstand costs will improve, but you should not wait for protection.”

From the macroeconomic perspective, Madan Sabnavis, the chief economist at Barouda Bank, praised the structural shift away from the previously multi -prices commodity and services tax system.
He said: “The shift towards the GST structure (5 % and 18 %) is very progressive,” adding that multiple rates have previously led to confusion of confusion and compliance with companies.

He also referred to the strategic time of reform, as it completed the previously announced tax cuts in the budget, which may open the estimated spending before the festival season.

About whether the consumption batch led by the reform on goods and services tax will lead to a high growth of gross domestic product, SABNAVIS said, “This will help promote consumption, but it does not radically change the expectations of GDP. While the direct impact of goods tax discounts and services on GDP will be marginal, I expect that there will be 0.3 % Or “positive increase”.

When asked about the loss of possible revenue for the government due to the rationalization of the commodity and services tax, Sabnavis stated that instead of calling it the loss of revenues, it must be called the transfer of revenues, “from the government to families.”
“It is unlikely that goods and services tax reforms will be fully compensated for the impact of American definitions on the Indian economy,” said Sabnafis, adding that it can help reduce the negative effects of definitions.

For the auto sector, which has long carried the high indirect taxes, the commodity tax and services proposed from 28 % to 18 % are seen as a great satisfaction.

Shridhar Kallani, a research analyst (Axis Securities), described it as a catalyst for the demand that is needed. “Reducing commodity and services tax by 28 % to 18 % in most cases will serve as an immunity enhancement for the auto sector as a whole.” The agents are already reporting higher inquiries. He added: “There are already inquiries on the request, especially for small carriers at the level of beginners.”

On the impact of low commodity and services tax rates on prices, he said: “It is expected that the prices of approximately 8-10 % will decrease on small passenger vehicles and two wheels. Nearly five to six Emis will be rescued by a shared man.”

He also participated in a view on increasing growth expectations for the auto sector based on commodity tax discounts and expected services. “For two wheels, where we expected growth from the middle to the top of two numbers, these expectations now increased to low double numbers. For passenger vehicles, which were largely less growing than two numbers, which were reviewed to the middle numbers.”

https://www.youtube.com/watch?