IRDAI asks reinsurers to pass on GST benefit to stakeholders

IRDAI has asked insurers to pass on the benefit of GST to stakeholders. The GST Council, in January, had exempted reinsurance schemes from the purview of GST on the condition that the benefit reduction in premium on such insurance schemes must be passed on to the beneficiaries and the State and Central exchequers. “Insurers should avoid any undue enrichment on this account. They may note that if the benefit on account of reduction in premium is not passed on to the insured/government, suitable action will be initiated under Section 171 of the CGST Act,” said Pravin H Kutumbe, Member, F&I, IRDAI.