GST Council decides to exempt 24 insurance schemes for reinsurance

The Insurance Regulatory and Development Authority of India (IRDAI) in a circular on Wednesday has informed all insurers that the Goods and Services Tax (GST) Council in its 25th meeting, has chosen to exempt reinsurance schemes from the purview of the tax network.

The proposal to exempt reinsurance schemes was recommended by the Fitment Committee and was approved by the GST Council on January 18. The Council has prescribed that any benefit from the reduction in premium on such insurance schemes, must be passed on to the beneficiaries, as well as State and Central exchequers.

Hasmukh Adhia, Finance Secretary at the Ministry