GST Exemption on Insurance Schemes with Government-Paid Premiums; Circular No. 16/16/2017 Clarifies Employee Policy Rules

Services provided to the Central Government, State Government, or Union territory under insurance schemes with premiums fully paid by these entities are exempt from GST, including CGST, UTGST, SGST, and IGST. Clarification is provided regarding GST applicability on general insurance policies offered by a State Government to its employees, police personnel, electricity department employees, or students. The exemption applies when the premium is paid by the State Government. However, if the premium is paid by employees or students, GST may be applicable, as outlined in Circular No. 16/16/2017-GST dated November 15, 2017.