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Hans India
25 minutes ago
- Hans India
Amazon Business unlocks digital procurement for 50M+ MSMEs across India
Amazon Business has opened access where Udyam and FSSAI license holders across India can now sign up on Amazon business. Along with existing GST and B-PAN options, this expansion ahead of the festive season provides digital procurement access through Amazon Business to over 50M+ MSMEs (80% of Micro, Small & Medium Enterprises) in the country. 'For MSME buyers, procurement can often feel like navigating a maze—multiple vendors, inconsistent pricing, and lengthy processes. In Amazon Business, we have been consistently solving this pain-point and making procurement simple, efficient. However, until now, Amazon Business access was limited to businesses with GST and Business PAN. Over time, we heard from many micro-businesses, who hold other business licenses like Udyam and FSSAI, that they would also benefit from the simplified digital procurement that Amazon Business offers. With this expansion, we have now enabled millions of businesses to access authentic products, competitive bulk pricing, credit and many more Amazon B2B benefits to streamline their procurement, right in time for the festive season' said Mitranjan Bhaduri, Director, Amazon Business. With the unlock of Amazon Business for Udyam and FSSAI holders, micro businesses across sectors — from agro and food processing to textiles manufacturing, packaging, and more, can now simplify their procurement by leveraging Amazon Business benefits such as bulk pricing, interest-free credit, and delivery across 100% of India's serviceable pin codes. Amazon Business transforms procurement from a complex, time-consuming process into a simple, transparent, cost-effective solution for small businesses. Additionally, in partnership with Amazon Pay Later, Amazon Business offers 30-day interest-free credit, helping manage cash flow for larger purchases. For business owners preparing for the festive season, digital procurement offers a critical competitive advantage. Allowing them to save time and money through Amazon Business's wider selection, bulk discounts, seamless tax credits, and reliable delivery—essential benefits when stocking inventory to meet peak festive demand. This value proposition that Amazon Business offers, has resonated strongly. During H1 2025, Amazon Business saw over 35% growth in new buying customers compared to the previous year, as businesses increasingly turn to digital procurement to streamline operations. The strongest adoption comes from entrepreneurs in tier-2 and tier-3 cities, who represent over 70% of the customer base, highlighting the platform's reach beyond metro cities. This growth aligns with broader trends—according to Bessemer Venture Partners, India's digital procurement market is expected to reach USD 200 billion by 2030, reflecting the massive transformation underway in how Indian businesses source and purchase.
Time of India
an hour ago
- Time of India
Full GST exemption on health and life insurance premiums proposed: Don't be happy
What is the current rate of GST levied on insurance premiums? What happens if the GST levy is done away with? The GST Group of Ministers (GoM) has today proposed to completely exempt premiums paid towards health and life insurance policies from the GST levy, ET reported. While this may seem like a great move to make insurance-related products more affordable for Indians, the final decision rests with the GST this may not spell great news for policyholders, as this move could mean significantly higher premiums for them. Read on to know more about how slashing GST on health and life insurance premiums to zero could effectively defeat the purpose of making insurance more affordable for present, GST is levied at the rate of 18% on both health and life insurance policy premiums. This means that if you buy a life insurance policy which has a premium of Rs 100, at 18% GST, you will have to pay Rs 118 while purchasing the 18% GST comes with input tax credit advantages. Under GST, businesses (in this case, insurers) can reduce their taxable liability by offsetting and claiming credits to the tune of GST they have paid on goods and services they the insurer incurs other expenses as well, such as maintaining an office, commission to agents, marketing expenses, etc. Since they are paying GST on all these activities as well, the government allows them to claim credits against the GST they have collected from policyholders and reduce their overall tax say you pay Rs 100 as a premium for the purchase of a life insurance policy, on which 18% (Rs 18) is charged as GST. Assume that out of this Rs 100, your insurer sets aside Rs 30 to pay office rent and Rs 40 to pay commission to agents. Remember that GST is being paid at the rate of 18% on both of the total GST paid by your insurer comes to Rs 12.6, i.e. Rs 5.4 for rent and Rs 7.2 for agent commission. The insurer sets this off against the GST it has collected from policyholders (Rs 18), bringing its total GST liability to Rs per experts, in the absence of GST from customers, ITC credits will also likely be done away with, unless the government acts otherwise. Hence, insurers would still have to incur Rs 12.6 worth of GST expenses per Rs 100 of premium, but would have no GST collected from policyholders (Rs 18) to set it off against. They will have to make necessary changes in their finances to absorb this additional GST a result, their overall expenses would rise, which would ultimately be passed on to the Hemik Shah, Co Founder Qian Insurance, "to determine if reduction in GST rate will help policyholders, we will have to first determine whether health and life insurance services are going to be considered as Nil Rated or will they be considered as exempt from GST. The answer to this will determine the eligibility of input tax credit. In case the services are considered as exempt, then input tax credit will not be available and therefore, the savings on account of GST rate reduction will be negated by the hike in premiums due to unavailability of credit".However, he further adds that if the health and life insurance services are classified as Zero Rated or Nil Rated, then credit will be available and can be used to set off GST liability of other lines of business. "In the absence of ITC, it seems unlikely that insurance companies will be able to pass on the benefits. This is because unavailability of credit will make the GST on goods purchased and services availed a cost for the insurance companies, which in turn may lead to hike in premiums to maintain profitability and solvency for the insurers", he says.
Hindustan Times
an hour ago
- Hindustan Times
From 18% to Zero? Ministers want life, health insurance exempt from GST
A Group of Ministers wants life and health insurance premiums exempt from goods and services tax (GST) in the upcoming reforms for the indirect tax regime. Why Every Indian Needs Both Health and Life Insurance The panel of state ministers wants 0% GST on life and health insurance premiums from 18% at present, Bihar's Deputy CM Samrat Chaudhary said after the meeting in New Delhi on Wednesday. That translates into a revenue loss of ₹9,700 crore, Telangana Minister Mallu Bhatti Vikramarka said. The panel met days after Prime Minister Narendra Modi announced sweeping cuts to the GST to boost India's economy in the face of a trade conflict with the United States. The final decision will be taken by the GST Council, which is chaired by Union Finance Minister Nirmala Sitharaman and includes all state finance ministers as members. The GST council meeting is expected in September or October, before Diwali. The proposed GST reforms, which will reduce the number of tax slabs to two from four (not including the zero percent slab), would benefit a wide range of sectors—from cars to cement and consumer goods—as well benefit businesses of all shapes and sizes, according to industry watchers. According to government sources quoted by the Press Trust of India, nearly 90% of the items in the 28% slab will move to 18%. Almost all the goods in the 12% slab will move to 5%. That effectively means nearly all essential goods and household items will get cheaper. With inputs from Reuters.
