CBIC exempts Reinsurance and Coinsurance from GST on as is where is basis [Read Circular]:

CBIC exempts Reinsurance and Coinsurance from GST on as is where is basis [Read Circular] The Central Board of Direct Taxes and Customs (CBIC) has issued a circular regularising GST Exemption on reinsurance and coinsurance commission for the period 07.2017 to 31.10.2024, on ‘as is where is’ basis. 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: a) Activity of apportionment of co-insurance premium by the lead insurer to the co-insurer for the insurance services jointly supplied by the lead insurer and the co-insurer to the insured in co-insurance agreements, subject to the condition that the lead insurer pays the Central tax, the State tax, the Union territory tax and the integrated tax on the entire amount of premium paid by the insured. b) Services by insurer to the reinsurer for which ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer, subject to the condition that the Central tax, the State tax, the Union territory tax and the integrated tax is paid by the reinsurer on the gross reinsurance premium payable by the insurer to the reinsurer, inclusive of the said ceding commission or the reinsurance commission. The above provisions were enacted vide Finance (No. 2) Act, 2024 and have been brought into force on 01.11.2024 vide Notification No. 17/2024-Central Tax dated 27.09.2024. Now as recommended by the 53rd GST Council, the payment of GST on the activities or transactions specified above is regularized for the period 01.07.2017 to 31.10.2024, on ‘as is where is’ basis. For Official Circular Download PDF Given Below: