**GST Removal on Notebooks and Stationery Items Leads to Price Hikes**

New Delhi: Under the GST 2.0 reforms, the government has removed GST on notebooks, exercise books, and stationery items. Previously, these items attracted a 12 percent GST and are now tax-free, providing relief to consumers.

However, the raw material for notebooks—paper—has seen its GST rate increase from 12 percent to 18 percent. As a result, notebook prices have risen. Shopkeepers are paying higher GST when purchasing paper but cannot charge any GST while selling notebooks due to the tax exemption. This loss of input tax credit is being added to the final price, causing an increase despite the GST removal on finished products.

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**Insurance Companies Not Fully Passing On GST Benefits to Policyholders**

The GST Council reduced GST on life and health insurance premiums from 18 percent to 0 percent, effective from 22 September. While this move was expected to lower insurance premiums, many policyholders report that insurance companies are not passing on the full benefit.

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**Health Insurance Premiums Rise Despite GST Relief**

Numerous complaints concern health insurance companies. For instance, one policyholder who paid Rs 63,000 last year found their premium increased despite the GST removal. The company attributed the hike to the policyholder moving into a higher age group, highlighting how factors other than GST also affect premium costs.

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**New Add-Ons Used to Justify Premium Rates**

Some insurance companies have added new coverage options or riders to policies, claiming these are additional benefits. Customers, however, argue that such benefits were part of older plans. This strategy has resulted in premiums either remaining unchanged or increasing, negating the intended GST relief.

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**Government and IRDA May Intervene**

Amid mounting complaints on social media, the government is considering asking the Insurance Regulatory and Development Authority (IRDA) to investigate the issue and take necessary action to ensure policyholders receive the rightful GST benefits.

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**Life Insurance Premiums See Only Slight Reductions**

While some life insurance policyholders have experienced premium reductions, these decreases are relatively small. For example, one customer reported a mere 2.5 percent premium drop despite the GST rate being cut by 18 percent. This clearly indicates that the full benefit is not reaching customers.

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**Few Companies Passing On GST Benefits**

A limited number of insurance companies have taken steps to reduce policy commissions and lower their costs, thereby passing on GST benefits to customers. However, such cases remain rare.

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**Conclusion**

Although the government has removed GST on notebooks and certain insurance premiums, the benefits are not fully reflected in final prices. Consumers are advised to remain vigilant and report discrepancies to authorities as necessary. The ongoing scrutiny by the government and IRDA is expected to ensure greater transparency and fair pricing in the near future.
https://www.freepressjournal.in/business/notebook-prices-rise-despite-zero-gst-insurance-policyholders-not-getting-full-gst-benefit