GST Council discusses exempting reinsurance from GST

By: Admin
April 19, 2024
Categories: GST Recent News
4 Min Read

India’s Goods and Services Tax (GST) Council is set to review exempting reinsurance business from GST.

The review is likely to be held after the general elections which are scheduled from 19 April to 1 June 2024 to elect the 543 members of the lower house of Parliament, reported Moneycontrol.

A senior government official told the news organisation that the Council might issue a clarification that reinsurance is not a supply of service and thus would not be subject to an 18% GST.

Many leading insurance companies last year reportedly received notices for non-payment of GST on reinsurance premiums.

“The GST’s fitment committee has already discussed the issue and it is proposed that reinsurance should not be treated as supply and hence no GST should be applicable on it,” the official told Moneycontrol.

The new government is likely to be formed in early June. The next GST Council meeting may be convened at the end of June.

Source from: https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/87907/Type/eDaily/India-GST-Council-discusses-exempting-reinsurance-from-GST