GST council is speeding up to reexamine the exempting reinsurance business from GST.
The same review is slated to emerge after the general elections spanning from April 19 to June 1, 2024, aimed at electing the 543 members of the lower house of Parliament, as per the report.
The Council may furnish a clarification stressing that reinsurance does not include a supply of service, hence denying the application of an 18% GST on the same, a senior government official stated.
The previous year, distinct leading insurance companies allegedly discovered themselves embroiled in a predicament, having obtained notices for non-payment of GST on reinsurance premiums.
Recommended: GST Impact on Insurance Sector with Slab Rates
The fitment committee of GST has already addressed the case, asking to exempt the GST by suggesting that reinsurance is not to be treated as a supply.
For the building of a new government in early June anticipations are rife setting the stage for effective transformations in policy and taxation. The subsequent GST Council meeting is expected to be called for the end of June, where the fate of reinsurance under the GST regime can be delineated.