General insurance sector gets Rs 18,000 crore GST bonanza
Ahead of the Union Budget, the general insurance sector has received a bumper relief amounting to over Rs 18,000 crore with the GST Council dropping the tax demand that the insurers had been slapped with.
The reliefs allowed by the GST Council include the dropping of GST demands amounting to over Rs 18,000 crore at an industry level, providing a significant respite to the sector, according to the General Insurance Council (GI Council), the apex body of general insurance companies in India. The GST demand was on co-insurance and reinsurance commissions and taxing of reinsurance on crop schemes.
GI Council’s argument was that GST demands on co-insurance and reinsurance commissions lack a legal foundation and it also highlighted the implications of taxing reinsurance of crop insurance schemes as it may not benefit the farmers. “These efforts culminated in the GST Council granting the much-needed relief,” GI Council said.
