India is currently in the midst of finalising the current Goods and Services Tax (GST) reform, expected to come into force on 1 July 2017. 

The current GST rate stands at 14% for financial services, which includes insurance premiums. The proposed amended rate will increase this by 3%. Additionally, two cesses are applied to insurance premiums in India. The Swachh Bharat Cess of 0.5% was applied from 15 November 2015 whilst the more recent Krishi Kalyan Cess of the same amount was introduced from 1 June 2016. This brings the current accumulative total to 15%, which is also applied to intermediary commissions. 

The long awaited GST reform will encourage a simplified and unified taxation system, reducing logistical costs and double taxation. Whilst there have been several postponements, Prime Minister Modi today announced that the 1 July rollout date would mark a "turning point" in the country's economy and made note that focus would be on cyber security surrounding the IT systems concerned with GST.