9911796707
TMI Blog2024 (10) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... on has been preferred seeking the following reliefs:- "(a) Issue a writ of mandamus or any other appropriate writ(s), or order(s) or direction(s) in the nature thereof, declaring that Notification No. 14/2018-Central Tax (Rate) dated 26.07.2018 issued by Respondent No. 1 whereby Entry 36A to the Principal Exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as inserted vide Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018) was amended to include all reinsurance services with respect to government sponsored insurance schemes is curative, clarificatory and thereby applicable with retrospective effect from 25.01.2018 and therefore all reinsurance services with respect to government insurance services were exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 02/2018 Central Tax (Rate) dated 25.01.2018 issued pursuant to 25th GST Council meeting and Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 issued pursuant to the recommendation of the 28th GST council meeting are curing, clarificatory in nature and applicable with effect from 01.07.2017 or at least with effect from 25.01.2018; (f) In alternate, issue a writ of mandamus or any other appropriate writ(s) or direction(s) or order(s) in the nature thereof directing Respondent No. 6 and 7, wholly owned government companies, to deposit the disputed GST demanded in Impugned Order dated 20.12.2023 along with interest and penalty with the Respondent No. 4 in terms of the contractual obligation and being the ultimate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The petitioner had also entered into a separate Facultative Proportional Reinsurance Agreement with the sixth respondent in relation to health insurance coverage to residents of the State of Maharashtra under the "Rajiv Gandhi Jeevandayee Arogya Yojna/Mahatma Jyotibha Phule Jan Arogya Yojna" on 11 January 2018. 7. It appears that on 18 January 2018, the GST Council introduced a new entry in Notification No.12/2017 dated 28 June 2017 exempting reinsurance services when offered in relation to government insurance schemes. It becomes pertinent to note that the said exemption notification at Serial No.40 had made the following provision: - "40 Heading 9971 Or Heading 9991 Services provided to the Central Government, Union territory und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarify the position which would obtain prior thereto. 12. These aspects ultimately fell for deliberation before the GST Council in its meeting held on 22 June 2024 and in which the recommendations of the Fitment Committee for regularization of payment of GST on reinsurance services came to be accepted. 13. This becomes apparent from a reading of Note 5.46 and the decision expressly taken by the Council in that regard and which is reproduced hereinbelow:- "5.46 Joint Secretary, TRU then presented the next agenda item relating to a request to clarify that reinsurance services of the insurance schemes for which total premium is paid by the Government (Sl. No. 40 of the notification No. 12/2017 CTR) are exempt from GST for the period 01.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 018, on reinsurance of specified general insurance and life insurance schemes, which are exempt from GST. 6.2 Certain specified general insurance and life insurance schemes are exempt from GST under Sl. Nos. 35 and 36 of notification No. 12/2017-CT(R) dated 28.06.2017. Vide entry at Sl. No. 36A of the said notification, reinsurance of the aforesaid exempted insurance schemes has also been exempted w.e.f. 25.01.2018. 6.3 GST Council in its 53rd meeting held on 22nd June, 2024 has recommended to regularize the GST liability on such reinsurance of exempt general insurance and life insurance schemes for the past period, i.e. from 01.07.2017 to 24.01.2018, on 'as is where is' basis. 6.4 Thus, as recommended by the GST Council, GST liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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