Quick Summary
GST Council is gearing up to reevaluate exempting reinsurance business from GST. According to a certain report, this review is slated to take place post the general elections spanning from April 19 to June 1, 2024, aimed at electing the 543 members of the lower house of Parliament. A senior government official indicated that the Council might issue a clarification asserting that reinsurance does not constitute a supply of service, thereby negating the application of an 18% GST on it.
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FAQ :
The GST Council is expected to review the exemption for reinsurance after the general elections conclude, likely in late June.
The Council might clarify that reinsurance is not a 'supply of service', which would mean it's not subject to the 18% GST.
Yes, last year, several leading insurance companies reportedly received notices for not paying GST on reinsurance premiums.
Yes, the GST fitment committee has deliberated and proposed that reinsurance should not be treated as a supply, thus exempting it from GST.
The next GST Council meeting is anticipated to take place towards the end of June, after the new government is formed.
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