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Exemption in relation to Insurance sector [ Entry no. 28,29,29A,29B,35,36,36A,40 ] - GST Ready Reckoner - GSTExtract Exemption in relation to Life /General Insurance Sector Exemption Entry 28 Services of life insurance business provided by way of annuity under the National Pension System (NPS) regulated by Pension Fund Regulatory and Development Authority of India (PFRDA) under the Pension Fund Regulatory and Development Authority Act, 2013 is exempt under GST. Scope The scope of the exemption is subject to some restrictions which can be easily understood from the below table: Who is eligible What specifically is exempt Limits for exemption Services provided by life insurance entities The service of life insurance business provided by way of annuity under the National Pension System regulated by Pension Fund Regulatory and Development Authority (PFRDA) of India is exempt from GST. The premium received by such life insurance companies under the National Pension System was exempt from Services Tax w.e.f. 1st April, 2016. The same benefits are also provided under GST The premium received by life insurance companies under the National Pension System regulated by Pension Fund Regulatory and Development Authority (PFRDA) of India is exempt. Example: R Ltd an insurance company provides life insurance business to its clients; such services shall be exempt if the company is under the National Pension System regulated by Pension Fund Regulatory and Development Authority (PFRDA) of India. Exemption Entry 29 Services of life insurance business provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds to members of the Army, Navy and Air Force , respectively, under the Group Insurance Schemes of the Central Government is exempt under GST. Exemption Entry 29A Services of life insurance provided or agreed to be provided by the Naval Group Insurance Fund to the personnel of Coast Guard under the Group Insurance Schemes of the Central Government. Exemption Entry 29B Services of life insurance provided or agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes of the concerned Central Armed Police Force. Example Raju an officer of the Indian Navy has been provided life insurance services by the Army, Naval and Air Force Group Insurance. Such services shall be exempt. Exemption Entry 35 Services of general insurance business provided under following schemes is exempt under GST. Hut Insurance Scheme; Cattle Insurance under Swarnajaynti Gram Swarozgar Yojna (earlier known as Integrated Rural Development Programme); Scheme for Insurance of Tribals; Janata Personal Accident Policy and Gramin Accident Policy; Group Personal Accident Policy for Self-Employed Women; Agricultural Pumpset and Failed Well Insurance; Premia collected on export credit insurance; Restructured Weather Based Crop Insurance Scheme (RWCIS)] or the Modified National Agricultural Insurance Scheme, approved by the Government of India and implemented by the Ministry of Agriculture; Jan Arogya Bima Policy; Pradhan Mantri Fasal Bima Yojana (PMFBY); Pilot Scheme on Seed Crop Insurance; Central Sector Scheme on Cattle Insurance;(m) Universal Health Insurance Scheme; Rashtriya Swasthya Bima Yojana; Coconut Palm Insurance Scheme; Pradhan Mantri Suraksha BimaYojna; Niramaya Health Insurance Scheme implemented by the Trust constituted under the provisions of the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999. Example Rakesh has provided services of general insurance business under Hut Insurance Scheme; this is exempt. Exemption entry 36 Services of life insurance business provided under following schemes is exempt under GST. Janashree Bima Yojana; Aam Aadmi Bima Yojana; Life micro-insurance product as approved by the IRDA, having maximum amount of cover of 2 lakh; Varishtha Pension Bima Yojana; Pradhan Mantri Jeevan Jyoti Bima Yojana; Pradhan Mantri Jan Dhan Yogana; Pradhan Mantri Vaya Vandan Yojana Example Rohan has provided services of life insurance business under Janashree Bima Yojana; such services shall be exempt. Exemption Entry 36A Services by way of reinsurance of the insurance schemes specified in Entry number 35 or 36 or 40. Exemption Entry 40 Services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory. As per Notification No. 12/2017-Central Tax (rate) dated 28.06.2017 define the following terms: As per para 2(zj) insurance company means a company carrying on life insurance business or general insurance business; As per para 2(zo) life micro-insurance product shall have the same meaning as assigned to it in clause (e) of regulation 2 of the Insurance Regulatory and Development Authority (Micro-insurance) Regulations, 2005; As per para 2(zn) life insurance business has the same meaning as assigned to it in clause (11) of section 2 of the Insurance Act, 1938; As per para 2(zo) life micro-insurance product shall have the same meaning as assigned to it in clause (e) of regulation 2 of the Insurance Regulatory and Development Authority (Micro-insurance) Regulations, 2005; As per para (zb) general insurance business has the same meaning as assigned to it in clause (g) of section 3 of the General Insurance Business (Nationalisation) Act, 1972;
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