GST on Co-Insurance & Reinsurance Premiums

Last updated: 29 January 2025

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This circular clarifies the Goods and Services Tax (GST) treatment for co-insurance and reinsurance premiums. It specifically addresses the payment of GST on co-insurance premiums apportioned by the lead insurer to the co-insurer. Additionally, it provides guidance on GST concerning ceding or reinsurance commissions deducted from reinsurance premiums paid by an insurer to a reinsurer. These clarifications are based on the recommendations from the 53rd GST Council meeting.

Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)

North Block, New Delhi
Dated the 28th of January, 2025

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals/ Director Generals (All)

Madam/Sir,

Subject: Regularizing payment of GST on co-insurance premium apportioned by the lead insurer to the co-insurer and on ceding /re-insurance commission deducted from the reinsurance premium paid by the insurer to the reinsurer – reg.

Based on the recommendations of the GST Council in its 53rd meeting held on 22nd June, 2024, at New Delhi, and in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017, the following clarification is being issued through this Circular

Official copy of the circular has been attached

FAQ :

This circular clarifies the payment of GST on co-insurance premiums apportioned by the lead insurer to the co-insurer, and on ceding/reinsurance commissions deducted from reinsurance premiums paid by an insurer to a reinsurer.

The clarifications are based on the recommendations of the GST Council in its 53rd meeting held on 22nd June 2024.

The circular is issued in exercise of the powers conferred under section 168(1) of the Central Goods and Services Tax Act, 2017.

The circular is addressed to the Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Central Tax (All) and the Principal Director Generals/Director Generals (All).

Notification No : Circular No. 244/01/2025-GST
Source : https://taxinformation.cbic.gov.in/view-pdf/1003260/ENG/Circulars

Attached File : 322600_11423_cir_244012025_cgst.pdf

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