Motor Vehicle Accident Fund Services Exempt from GST Under Section 164B of the Motor Vehicles Act, 1988.
Services provided by the Motor Vehicle Accident Fund, established under section 164B of the Motor Vehicles Act, 1988, are exempt from GST, including CGST, UTGST, SGST, and IGST. This exemption applies to insurance services funded by contributions from insurers, derived from premiums collected for third-party motor vehicle insurance. This provision was introduced by Notification No. 06/2025-Integrated Tax (Rate) dated January 16, 2025.