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        GST Exemption Clarified for Reinsurance of Specified Insurance Schemes; Includes 'Retrocession' Per IRDAI Regulations, 2018

        Services related to reinsurance of specified insurance schemes are exempt from GST under certain headings. The term 'retrocession' refers to a reinsurance transaction where part of the risk is ceded to another insurer or cross-border reinsurer, as per the IRDAI Regulations, 2018. Clarifications are provided regarding GST liability on reinsurance for specified general and life insurance schemes, including those fully funded by the government. The inclusion of 'retrocession' within 'reinsurance' is also clarified. Amendments and notifications have been issued to update these provisions.

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