HDFC Life to cut commissions to cushion GST blow

HDFC Life Insurance Co. will reduce distributor commissions as the removal of the goods and services tax (GST) on certain retail term and health policies caused a loss of input tax credit even as it passed on lower tax benefit to consumers, according toa top executive.

- Anshika Kayastha

GST changes impacted HDFC Life's Q2 margins. MINT

“Froma customer perspective, definitely the entire benefit is being passed on to customers,” CFO Niraj Shah told Mint. “...we are already in touch with all our distributors interms of realigningsome of the distribution commission. Those conversations are in progress, and I think we will execute all of them in the second half of the year.”

GST changes impacted the second-largest private insurer's profitability and marginsin the quarter ended September.