Insurance Co-Premium Apportionment and Reinsurance Commission Now Included in Schedule III of WBGST Act from November 2024

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Full Text of the Document

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....The West Bengal Directorate of Commercial Taxes has regularized GST payment for two insurance-related transactions on an "as is where is" basis for the period from 01.07.2017 to 31.10.2024. Effective 01.11.2024, these transactions have been included in Schedule III of the WBGST Act as neither supply of goods nor services: (1) co-insurance premium apportionment by lead insurers to co-insurers, provided the lead insurer pays GST on the entire premium; and (2) ceding/reinsurance commission deducted from reinsurance premiums, provided the reinsurer pays GST on the gross reinsurance premium inclusive of commission. This implementation follows recommendations from the 53rd GST Council meeting.....