Alankit Limited- GSP (GST Suvidha Provider) 8 February 2018 Copyrights Reserved of 18

Transcription

1 v Alankit Limited- GSP (GST Suvidha Provider) 8 February 2018 Copyrights Reserved of 18

2 Our Vision & Mission Vision To be a unique service Provider in the sectors the group serves Mission To become a customer centric organization with focus on building trust by our unmatched standards 8 February 2018 Copyrights Reserved of 18

3 About Us Alankit Limited is the Flagship company of Alankit Group Started its business operations in 1995 Alankit group evolved as a full fledged Financial and e- Governance services provider Alankit Offers an integrated portfolio of varied services ranging from GST, Financial Services, e-governance, Health Care to Insurance Broking Alankit Limited offerings include the entire spectrum of e- Governance Services like GST Suvidha Provider (GSP), TIN- FC & PAN Center, Aadhaar Enrolment, Business Correspondent (BC), Aadhaar Seeding, Authentication User Agency (AUA), Aadhaar Seeding, KYC User Agency (KUA) & POP- National Pension System (NPS) etc Group activities are regulated by SEBI, BSE, NSE, MCX, NCDEX, IEX, NMCE, IRDA, PFRDA, UIDAI, NSDL, CDSL & GSTN etc 8 February 2018 Copyrights Reserved of 18

4 Our Strengths 25 Years of Service 27 Services 12 Group Companie s 22 Regional Offices 21 Million Customers 5468 Business Location 678+ Cities 3300 Corporate Clients 8 February 2018 Copyrights Reserved of 18

5 Group Services Financial Services e- Governance Insurance Healthcare 8 February 2018 Copyrights Reserved of 18

6 Group Milestones GST Suvidha Provider (GSP) Insurance Online Mobile trading App Successfully processed - IPO of HUDCO Limited Rights Issue - Vardhman Special Steels Limited Buy Back Offer - HCL Technologies Limited 2016 to Current 2011 to to 2010 Facilitator - National Payments Corporation of India (NPCI Indian Workers Resource Center (IWRC) Authentication User Agency (AUA) Agent - National Academic Depository (NAD Printing of PVC Aadhaar Card Aadhaar Seeding Agency Business Correspondent (BC) Atal Pension Yojana (APY) Distribution Agency for EESL National Distributor - ID Card Printers Member of : Dubai Gold & Commodity Exchange (DGCX) Bombay Stock Exchange (BSE) Member of Indian Energy Exchange (IEX) Member of Currency Exchange e-governance- CRA Member of : Indian Commodity Exchange (ICEX) 2001 to 2005 Member Commodity Exchange Third Party Administrator (TPA) Insurance Broker e-governance-tin 1995 to 2000 Registrar & Share Transfer Agent (RTA) Trading & Clearing Member NSE, OTCEI, NSE-F&O Depository Participant-NSDL & CDSL 8 February 2018 Copyrights Reserved of 18

7 What is GST? Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition. In simple words, GST is an indirect tax levied on the supply of goods and services. GST Law has replaced many indirect tax laws that previously existed in India. Central Taxes Central Excise duty Additional duties of excise State Taxes State VAT / Sales Tax Central Sales Tax Purchase Tax Excise duty levied under Medicinal & Toilet Preparation Act Additional duties of customs (CVD & SAD) Service Tax Surcharges & Cesses GST Entertainment Tax (other than those levied by local bodies) Luxury Tax Entry Tax (All forms) Taxes on lottery, betting & gambling Surcharges & Cesses 8 February 2018 Copyrights Reserved of 18

8 Introduction GST is having an important impact on the insurance industry as well as policyholders. Typically, policyholder's pay service tax on the risk element of the premium component whereas the investment element of the policies is usually out of the service tax scope. With the implementation of the GST, insurance policies including life, health and motor have become costlier as taxes will go up by at least 3 % or 300 basis points. Primarily, there are three major kinds of life insurance products Term insurance plans, Ulips and Endowments (including money back). The applicability of service tax (in the previous format) on their premium is not similar in all three of them. The premium paid in life insurance policies represents two portions risk coverage and savings. The GST is only on the risk portion of the premium and not on savings portion. 8 February 2018 Copyrights Reserved of 18

9 Life insurance & Health Insurance There are 3 types of life insurance: Term insurance plans- basic life insurance policies ULIPs- insurance and investment under a single integrated plan Endowments (including money-back)- life insurance policies that pay a lump sum on maturity/death or a fixed sum every month (sort of like a pension) 8 February 2018 Copyrights Reserved of 18

10 Different Plans 1.Term Plan Term plans purely offer death benefit and are termed as pure risk protection plans. In such plans sum assured is paid to the nominee, if insured dies during the term of the policy. The premium component of a term plan comprises the majority of the risk element to provide insured a risk cover throughout the tenure of the policy. In previous Regime, service tax of 15 % is imposed on the premium cost of the term plans. As per rates declared GST rates are 18%. This means the premium will get costlier by 3 %. 2. Endowment Plan Endowment plans or traditional insurance savings plans offer both death and maturity benefits, whichever occur first. In Previous regime, endowment plans attract a service tax of 3.75 % on the premium in the first year of the policy and will rise to 4.5 % in the first year under the new tax regime. previously, % of the service tax is levied on endowment plan's premium for the second year, which is expected to rise to 2.25 % from the second year onwards after the implementation of GST. 8 February 2018 Copyrights Reserved of 18

11 3.ULIP Unit Linked Insurance Plans (ULIPs) also offer dual benefit of insurance and investment. Previously, service tax of 3.5 % is levied on protection part of ULIPs in the first year and 1.75 % from second year onwards. This would go up to 4.5 % in the first year and 2.25 % from second year onwards. Similar will be the impact on general insurance such as car, health and other non-life policies i.e. service tax (replaced by GST) will increase by 3 percent of the premium amount. 4.Health Insurance Plan In previous tax regime, health plan premium attracts a service tax of 15 % on its premium cost. With the introduction and implementation of the GST, the cost of purchasing the health insurance will become expensive as it will attract a tax of about 18 % on premium. 8 February 2018 Copyrights Reserved of 18

12 Change in Rates For example, HDFC Life Insurance applies service tax at the following rates: Category Service Tax With SBC And KKC After GST Term insurance premium 15% 18% ULIP charges 15% 18% Health insurance premium 15% 18% All these rates are replaced by 18% which will result in increase in premiums. 8 February 2018 Copyrights Reserved of 18

13 ULIP Plan The second most important thing to notice is regarding ULIP Plans. the GST is not applicable on the whole premium you pay. Instead, it is applicable only on the premium which is exclusive of the investable amount. GST Applicability on ULIP Plans Gross Premium Rs Investment Portion Rs. 800 Applicable charges like policy admin charges, fund management charges or mortality charges 18% on Applicable charges only Rs. 200 Rs February 2018 Copyrights Reserved of 18

14 Conclusion Both existing and new policyholders face an increase in the premium amounts due to increase in rates. For insurers, the increase in taxes will be passed on to the consumers. The insurers expect higher compliance and administrative costs due to the increased number of GST returns and also effect of taxability of inter-branch services. 8 February 2018 Copyrights Reserved of 18

15 General insurance includes fire insurance, marine insurance, car insurance, theft insurance etc. The GST rate is 18% on general insurance. For policyholders, the general insurance premium will rise as tax has increased from 15 to 18%. Corporate policyholders, who have taken general insurance, can enjoy input tax credit on the GST paid on their policies (it was available to them even under service tax). Life and health insurees will not have input tax credit as it is not available for life and health insurances (as they are for personal purposes). Even corporate policyholders with group life and health insurance for their employees will not enjoy any input tax credit. 8 February 2018 Copyrights Reserved of 18

16 Our Presence 8 February 2018 Copyrights Reserved of 18

17 Contact us Corporate Office: Alankit House, 4E/2, Jhandewalan Extension, New Delhi Phone No.: Mobile No.: 8 February 2018 Copyrights Reserved of 18

18 Disclaimer This Presentation has been prepared by Alankit Group and has to be read in conjunction with its oral presentation. The information in this presentation does not propose to be comprehensive. Neither Alankit nor any of its officers employees, advisors or agents accepts any responsibility for/ or makes any representation or warranty, express or implied, as to the truth, fullness, accuracy or completeness of the information in this presentation (or whether any information has been omitted from the presentation) or any other information relating to Alankit, its subsidiaries or associated companies, whether written, oral or in a visual or electric form, transmitted or made available. This document is confidential and is being provided to you solely for your information and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose. This document is directed only at relevant persons. Other persons should not act or rely on this document or any of its contents. No reliance may be placed for any purposes whatsoever on the information contained in this document or any other material discussed during this presentation, or on its completeness, accuracy or fairness. The information in this document and any other material discussed at this presentation is subject to verification, completion and change. The information and opinions contained in this document are provided as at the date of the presentation and are subject to change without notice. By attending the presentation you agree to be bound by the foregoing terms. Trademarks or Registered Trademarks are the property of their respective owners. 8 February 2018 Copyrights Reserved of 18