The Insurance Regulatory and Development Authority of India ( IRDAI ) has exempted 24 schemes of insurance from Goods and Services Tax ( GST ) regime for reinsurance and entrusted the insurance firms to pass those benefit to the customers.
During the 25th GST council meet held at New Delhi introduced the proposal of exempting reinsurance schemes in respect of insurance from GST based on a condition that the benefit of exemption should be passed to those beneficiaries by giving reduced premium.
The Insurance Regulatory and Development Authority of India (IRDAI) has further directed all the insurance firms to avoid any undue enrichment arising out of this act of exempting such schemes from tax.
“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 insurance companies may be initiated with National Anti-Profiteering Authority under Section 171 of the CGST Act,” IRDAI said.
The exemption was really helpful to those customers as well as for schemes relating to other insurance schemes of the government.
The 24 insurance schemes which are exempted from the tax includes Aam Aadmi Bina Yojana, Varishtha Pension Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana, Janashree Bima Yojana, Universal Health Insurance Scheme, Pradhan Mantri Jan Dhan Yojana, Hut Insurance Scheme, Rashtriya Swasthya Bima Yojana, Pradhan Mantri Fasal Bima Yojana, Universal Health Insurance Scheme and Niramaya Health Insurance Scheme, among others.
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