<h1>Tax authority to consult insurers on transitional fix for reversing accumulated ITC after GST exemption on life and health insurance</h1> The tax authority will consult with the insurance sector to design a transitional mechanism addressing accumulated input tax credit (ITC) after the GST exemption on individual life and health insurance and reinsurance becomes effective September 22. Under current guidance, suppliers whose outward supplies are newly exempt must reverse accumulated ITC, a rule insurers contend would materially affect finances. The authority intends stakeholder talks to explore transitional relief, with implementation timing contingent on industry engagement and ideally before the exemption date. The change follows a GST rate rationalisation that reclassifies many supplies and establishes new rate bands, while historical GST receipts from life and health insurance were substantial.