Notebook Prices Rise Despite Zero GST; Insurance Policyholders Not Getting Full GST Benefit

New Delhi: The government removed GST on notebooks, exercise books, and stationery items under GST 2.0. Earlier, these items had 12 percent GST. Now, they are tax-free.

However, the raw material for notebooks—paper—is now taxed at 18 percent, up from 12 percent. Due to this, notebook prices have increased, as shopkeepers pay GST while buying paper but cannot charge GST from customers when selling notebooks. This creates a loss of input tax credit, which is added to the final price.

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Insurance Companies Not Passing Full GST Benefit

The GST Council reduced GST on life and health insurance premiums from 18 percent to 0 percent. These changes started from 22 September. But insurance companies are not giving the full benefit to policyholders.

Instead of reducing premiums as expected, companies have used different ways to keep or even increase the premium amounts.

Health Insurance Premiums Increased for Many

Many complaints are about health insurance companies. For example, one person paid Rs 63,000 last year. This year, even though GST was removed, the premium increased because the person turned 70, and the company said his age group changed.

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New Add-ons Added to Justify Premiums

Some companies added extra coverage or riders to policies and said these were new benefits. But customers said these were already part of older plans. So, despite GST relief, the premiums remained the same or went up.

Government and IRDA May Step In

Due to many complaints on social media, the government may ask the Insurance Regulatory and Development Authority (IRDA) to look into the matter and take action.

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Life Insurance Premiums Reduced Slightly

Some customers reported only a small drop in premiums. For example, one person saw just a 2.5 percent decrease, while GST was reduced by 18 percent. This shows companies are not passing the full benefit.

Some Companies Did Pass On GST Benefit

A few insurance companies reduced policy commissions to cut their costs and passed on the GST benefit to customers. But such cases are fewer.