Ashwani Nexus

  The ongoing discussion regarding making Goods and Services Tax (GST) nil, on insurance premiums, has garnered significant attention. While many have welcomed the proposal, some argue against it, citing the loss of Input Tax Credit (ITC). This article explores the implications of this policy change and presents a case for a zero-GST regime on insurance premiums. 💠 The Principle of GST on Insurance Insurance is a fundamental need and a crucial social security measure. It should be exempt from GST. While a zero-GST rate would mean the unavailability of ITC for insurers, some believe this could lead to increased premiums. To assess this claim, i have performed broad-level calculations based on publically available data, to estimate the potential impact on customer costs under different scenarios. 💠 Analysis of Scenarios To understand the financial implications, let's consider three distinct cases, using a current premium of ₹1,000 for a health insurance policy.Calculations shoul...

  The proposed elimination of the Goods and Services Tax (GST) on insurance premiums is a topic of significant debate. Proponents argue that insurance is a vital necessity for financial and social security and, therefore, shouldn't be taxed. Removing the GST would make policies more affordable and accessible, encouraging wider adoption and helping to close the "protection gap"—the difference between the amount of insurance needed and the amou nt of insurance purchased. Understanding the Current Tax Structure Currently, GST rates on insurance premiums aren't uniform. The rates vary depending on the type of policy: Health and General Insurance: These policies are taxed at 18% . Life Insurance: Term Insurance: Taxed at 18% . Endowment and Pension Policies: Taxed at 4.5% . Annuity Plans: Taxed at 1.8% . Unit-Linked Insurance Plans (ULIPs): GST is applied to specific components, such as risk premiums...

  In the ever-changing landscape of today's business environment, an organization's ability to be nimble-footed and flexible is no longer a luxury—it's a necessity for survival and growth. The key to maintaining focus on organizational objectives amidst constant change is to create a culture where adaptation is ingrained in the very fabric of how work gets done. This requires m oving beyond top-down directives and empowering every employee, from the executive suite to the front desks, to be an active participant in the process of change. The core of this strategy lies in fostering a continuous feedback loop and open dialogue. By allowing and encouraging open feedback , organizations can tap into the invaluable insights of their front-line employees. These individuals are often the first to encounter new challenges, see procedural inefficiencies, or identify opportunities for improv ement. An open-door policy for suggestions, coupled with forums where discussions are en...

  The financial world is abuzz with the terms "Fintech" and "AI," but there's a significant gap between what companies claim and what they're actually doing. Many institutions are mistaking simple digitization and automation for true AI implementation.   T here   has been increased   digitation of   functionin g , ease of doing transaction by the customers ,online customer onboarding   etc. While these efforts are valuable, they represent a different stage of technological evolution. The world   of AI has moved much faster. So, what's the difference? Digitization vs. AI: A Crucial Distinction Think of it this way: Digitization is the process of moving from a physical system to a digital one. For a bank, this means converting paper records into digital files or launching a mobile app that allows you to transfer money. It's about making existing processes electronic. Automation takes this a step further by using technology to perfor...