A bike insurance policy in India is one of the smartest investments to protect your bike and its value, especially if you plan on using it as your primary means of transportation. Bike insurance also covers any other vehicles that might be attached to your bikes, such as spare wheels, trailers or sidecars. However, not all bike insurance policies are created equal – some offer fewer benefits than others. Adding your GST number to your bike insurance policy will significantly increase the coverage you receive for minimal cost, making it worth investigating.
Is it Possible to Add Your GST Number to Your Bike Insurance?
It is possible to add your GST number to your bike insurance policy in India. You can contact your insurance company and request to add the GST number to your policy. Doing so will help you claim any input tax credits that you may be eligible for.
Benefits of Adding My GST Number to My Bike Insurance Policy
When you add your GST number to your bike insurance policy, you create a record of your purchase that can be used for tax purposes. This can help reduce your taxes and provide proof of purchase when you need to claim. Additionally, adding your GST number to your policy can help speed up the claim process, as your insurer will have all the necessary information on file. If you don't know your GST number or are unsure how to find it, contact your local authority or visit the government website.
What if You Don't Provide Your GST Number When Claiming Bike Insurance?
As of now, there are still some doubts as to whether it would be charged when you insure your bike as there have been no regulations yet made regarding this matter. If you add a GST number to your bike insurance policy, all products sold will be subject to a GST of 18%, including the premium. If customers decide not to provide their GST number and claim damages, they will only receive 90% of their claim amount. The key takeaway is that if you're considering adding your GST number as part of your bike insurance policy application process, make sure you know what's going on before making a decision.
What is the Goods and Services Tax (GST)?
GST is a tax levied on the supply of goods and services. The tax is levied on the value of the good or service. The GST rate in India is 18% and is levied on the sale of goods and services, and the import and export of goods. There are four types of GST in India:
CGST (Central Goods and Services Tax),
SGST (State Goods and Services Tax),
IGST (Integrated Goods and Services Tax),
and UTGST (Union Territory Goods and Services Tax).
It was implemented by the Indian government on July 1, 2017, and has been collected since then.
GST Rates Applicable to Bike Insurance
In India, the GST rate for bike insurance is 18%. If you buy a new bike insurance policy, your premium will be 18% higher than what you would have paid without GST. However, if you renew your bike insurance policy, GST will not affect the premium. Instead, it will be calculated at the time of renewal. If you need bike insurance, come to Paytm Insurance, a trusted online marketplace for best-in-class insurance products.
GST Impact on Two-wheeler Industry
Implementing the Goods and Services Tax (GST) has had a mixed impact on the two-wheeler industry in India. The new tax structure has increased the prices of two-wheelers but has also led to an increase in sales due to the reduction in overall taxes. The GST has also impacted the insurance sector, with some insurers now offering discounts for customers who add their GST number to their policy.
GST Rate on Electric Bikes
The GST rate on electric bikes was 12% before it was slashed to 5% on 1st August 2019.
GST on Used/Old Bikes
If you're buying a used bike, its previous owner may have already paid GST on it. You can confirm this by checking for a valid GST number on the bike's registration papers. The bike may be exempt from GST if it is more than five years old. To find out for sure, you can contact your local RTO office. If you're buying a new bike, you'll have to pay GST on it.
The GST rate on second-hand bikes or two-wheelers was 28%, but now it has been cut to 12%.
The Bottom Line
Bike insurance can be complicated if you’re not familiar with the policy's terminology, let alone the details. Adding a GST number to your bike insurance policy may seem irrelevant at first, but knowing whether or not it applies to your situation can save you from having to shell out later. This article details everything you need regarding adding the GST number to your insurance policy.