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Circular No. 244/01/2025- GST
F. No. CBIC-190354/2/2025- TO(TRU-II)-CBEC
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
North Block, New Delhi
Dated the 28
th
of January, 2025

To,

The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/
Commissioners of Central Tax (All) / The Principal Director Generals/ Director Generals
(All)

Madam/Sir,

Subject: Regularizing payment of GST on co- insurance premium apportioned by the lead
insurer to the co-insurer and on ceding /re- insurance commission deducted from the
reinsurance premium paid by the insurer to the reinsurer – reg.

Based on the recommendations of the GST Council in its 53
rd
meeting held on 22
nd
June,
2024, at New Delhi , and in exercise of the powers conferred under section 168(1) of the Central
Goods and Services Tax Act, 2017, the following clarification is being issued through this
Circular:
2. On the recommendations of the 53
rd
meeting of the GST Council held in New Delhi on
22
nd
June, 2024, the following activities or transactions were included in Schedule III of the CGST
Act, 2017 as activities or transactions which shall be treated neither as a supply of goods nor as a supply of services:

a) Activity of apportionment of co- insurance premium by the lead insurer to the co- insurer
for the insurance services jointly supplied by the lead insurer and the co- insurer to the
insured in co- insurance agreements, subject to the condition that the lead insurer pays the
Central tax, the State tax, the Union territory tax and the i ntegrated tax on the entire amount
of premium paid by the insured.

b) Services by insurer to the reinsurer for which ceding commission or the reinsurance commission is deducted from reinsurance premium paid by the insurer to the reinsurer,

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subject to the condition that the C entral tax, the State tax, the Union territory tax and the
integrated tax is paid by the reinsurer on the gross reinsurance premium payable by the
insurer to the reinsurer, inclusive of the said ceding commission or the reinsurance
commission.

The above provisions were enacted vide Finance (No. 2) Act, 2024 and have been brought into
force on 01.11.2024 vide Notification No. 17/2024- Central Tax dated 27.09.2024.

3. In its 53
rd
meeting, the GST Council further recommended that the payment of GST on the
activities or transactions , as specified in paragraph 2 above, may be regularized for the past period,
i.e. from 01.07.2017 to the effective date of amendments in the CGST Act, , on ‘as is where is’
basis.

4.
Thus, as recommended by the 53
rd
GST Council, the payment of GST on the activities or
transactions specified in paragraph 2 above is regularized for the period 01.07.2017 to 31.10.2024,
on ‘as is where is’ basis.

5.
Difficulties, if any, in the implementation of this circular may be brought to the notice of
the Board.


Yours sincerely,



(Sachin Jain)
Joint Secretary, TRU-II