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 T

Last updated: 01 February 2025

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This circular provides clarification on the Goods and Services Tax (GST) applicable to co-insurance premiums and re-insurance commissions. It addresses the GST payment on co-insurance premiums apportioned by a lead insurer to a co-insurer, and on commissions deducted from reinsurance premiums. These clarifications are based on the recommendations made during the 53rd GST Council meeting held on 22nd June 2024.

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:

2. On the recommendations of the 53rd meeting of the GST Council held in New Delhi on 22nd June, 2024, the following activities or transactions were included in Schedule III of the CGST Act, 2017 as activities or transactions which shall be treated neither as a supply of goods nor as a supply of services:

Official copy of the circular has been attached

FAQ :

The circular clarifies the regularisation of GST payment on co-insurance premiums apportioned by the lead insurer to the co-insurer, and on ceding/re-insurance commission deducted from reinsurance premiums.

The clarification is based on the recommendations of the 53rd meeting of the GST Council, 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.

Based on the recommendations of the 53rd GST Council meeting, certain activities or transactions were included in Schedule III of the CGST Act, 2017, treating them as neither a supply of goods nor a supply of services.