GST Council Proposes Amendment in ‘category of registered person’ for taxpayers opted for Composition Levy FORM CMP-02

The GST Council has proposed a GST exemption on third-party motor premiums collected for accident funds. This exemption aims to alleviate the tax burden on insurance providers and make insurance products more affordable for consumers. Third-party motor premiums are generally collected by insurers to fund accident compensation, and the exemption ensures that these premiums are not subject to GST, which would increase their overall cost. By removing the GST on such premiums, the government aims to reduce the financial load on consumers and ensure that accident coverage remains affordable, particularly in cases of unforeseen accidents. This proposal is expected to benefit both the insurance sector and policyholders, enhancing the accessibility of insurance products in the market.