Exclusive | GST Council likely to discuss coinsurance, reinsurance issues at next meet
Goods and Services Tax (GST) co-insurance and re-insurance are likely to be discussed at the next meeting of the GST Council, after the issue is examined by the fitment committee, a senior government official told Moneycontrol. Certain industry practices have been leading to non-payment of the tax, due to which clarity needs to be brought in, the official explained.
The GST authorities have completed investigations into insurance companies for tax evasion that has resulted in cases on three counts, due to higher commission paid to agents, coinsurance and reinsurance. In all the three cases, the department has sent out notices to insurance companies.
“On certain issues in insurance that have become industry practice, they may be taken up by the GST Council. On coinsurance and reinsurance, the matter may be examined by the fitment committee and placed before Council at the next meeting. The stakeholders have also sent representations to the GST authorities in this regard seeking clarifications, the official told Moneycontrol.
The next GST Council meeting is likely to be held before March-end. “The issues have to be dealt with, so certain issues will be taken up by Council and clarified,” he said.
