|It is informed that the proposal to exempt reinsurance schemes in respect of specified insurance schemes has been approved by the GST Council in its 25th meeting held on 18.01.2018 on the condition that the benefit of reduction in the premium on such Insurance schemes, must be passed on to the beneficiaries and the State and Central exchequers. Insurers shall avoid any undue enrichment on this account. Insurers may note that if necessary benefit on account of reduction in premium is not passed on to the insured / Govt., suitable action against the Insurance Companies may be initiated with National Anti-Profiteering Authority under Section 171 of the CGST Act.
In this regard, a copy of D.O. No. 354/12/2013-TRU dated 24.01.2018 from the Finance Secretary is enclosed, for information and necessary action. All insurers are advised to comply with the above in letter and spirit.
(Pravin H Kutumbe)
Source : IRDAI