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00:00Very good morning to you Mr. Sabra and great to speak with you.
00:03Just want to get your sense that this group of ministers on GST on health insurance,
00:07then they have to make a decision by end of October.
00:11Do you think that this is something that we can actually see happening in another couple of months
00:17or is this one of those contentious issues which could be kicked down the road even further?
00:24I think that's why a GOM has been created to really evaluate all the issues.
00:28So they have both sides of the coin.
00:31There is already a cost which the company is incurring because there are
00:36input goods and services which it is procuring.
00:41The output has to be, the demand is both for exempting and for reducing the rate.
00:49How does it really stack up?
00:51How much does the company really benefit and how much can it really pass on to the
00:56customers in terms of reduced insurance?
01:00All that needs to be really looked at to reach a decision.
01:03And I think that's what the GOM is going to do.
01:05Everything is possible.
01:09And there could be a segmental benefit which could be given.
01:14I hope segmental exemptions are not given out because it really impacts the company
01:19in terms of compliances.
01:20There is a lot of cost coming in terms of rate reversals.
01:24So the whole spectrum is open.
01:31Technically, everything is possible right now.
01:34All right.
01:34So Mr. Sarpar, let me just ask that question again because I understand that there are
01:38two sides to it.
01:39There's a conversation going on.
01:40You're saying everything can happen.
01:41What is the likelihood?
01:42Because if there are concerns from states about loss of revenues today, those concerns
01:47continue a month from now as well, isn't it?
01:51Yeah.
01:52So I think my gut feeling is the rates should go down.
01:59I don't expect exemptions to come in.
02:02And that's personal perception.
02:03One of the things you have to remember that from a company's perspective, these insurances
02:08which are being taken are not creditable in the hands of the companies.
02:12So any group insurance, any life insurance, which the companies or the health insurance
02:17which the companies give out, there is no credit available to them given that these
02:22are employee expenses.
02:26So ultimately, a lower 5% also benefits the companies.
02:31A lower tax also can be passed on easily depending upon.
02:37Yeah.
02:37So a lower tax can be passed on.
02:39So I do see, given that there's so much of debate at some point of time, rates do going
02:45down.
02:48All right.
02:48Thank you so much, Mr. Sapra, for joining us, tax partner at EY India, talking about
02:53how health insurance could happen down the line.
02:56I mean, so many more up in the air in terms of online gaming as well, but just focusing
03:00on health insurance because of the kind of stock impact we've seen in those companies.