GST Council okays exempting 24 insurance schemes for reinsurance

sector regulator Irdai today said as many as 24 schemes will be exempt from (GST) for and asked firms to pass on the benefits to customers.

The proposal to exempt schemes in respect of specified plans has been approved by the in its 25th meeting held on January 18, 2018 on the condition that the benefit of reduction in the premium on such schemes must be passed on to the beneficiaries and the state and central exchequers, Irdai said in a circular directed to all insurers.

The Regulatory and Development Authority of (Irdai) has further directed all the firms to avoid any undue enrichment arising out of this exemption.

“Insurers may note that if necessary benefit on account of reduction in premium is not passed on to the insured/ government, suitable action against the companies may be initiated with under Section 171 of the CGST Act,” Irdai said.

As many as 24 schemes have been exempted from being taxed under GST including Janashree Bima Yojana, Aam Aadmi Bina Yojana, Varishtha Pension Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Vaya Vandan Yojana, Hut Scheme, Pradham Mantri Fasal Bima Yojana, Universal Health Scheme, Rashtriya Swasthya Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Niramaya Health Insurnace Scheme, among others.

The exemption was sought for ease of living of senior citizens as well as for schemes relating to other schemes of the government.

“Considering the fact that no GST is payable on premium of such schemes and the GST paid on the re-is included in the cost of premium charged by the companies from the beneficiaries and also shared between the centre and the state governments, the proposal to exempt schemes in respect of specified schemes has been approved by the ..,” the ministry said in a communication.

source:http://www.business-standard.com/article/pti-stories/gst-council-okays-exempting-24-insurance-schemes-for-reinsurance-118032801377_1.html

Related Posts