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GST revamp: Health and term insurance premium may turn cheaper; but insurers fear short-term margin hit, says HSBC report
The GST Council is considering a rate cut on health and term insurance, potentially making premiums more affordable. While a full exemption could lower premiums significantly, it may create a revenue shortfall for the government. Insurers might face short-term profitability pressures due to slower repricing, but long-term benefits include increased insurance penetration.
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