CIRCULAR NO. 244/01/2025-GST, Dated 28-01-2025
The 53rd GST Council meeting recommended including specific insurance-related transactions in Schedule III of the CGST Act, 2017, classifying them as neither a supply of goods nor services. These transactions include the apportionment of co-insurance premiums by the lead insurer to the co-insurer, with the condition that the lead insurer discharges GST on the entire premium, and services provided by an insurer to a reinsurer, with the reinsurer discharging GST on the gross reinsurance premium, including any ceding or reinsurance commission.
To give effect to these recommendations a notification was issued, bringing these provisions into force from 01/11/2024. Additionally, the GST Council recommended regularizing GST payments on these transactions for the period from 01/07/2017 to 31/10/2024, on an ‘as is where is’ basis, providing clarity and resolving past tax disputes. This has been outlined in the circular, which offers a clear framework for implementation. Any difficulties in implementation may be referred to the Board.
