GST Council proposes GST exemption on third-party motor premiums for Accident Fund

The GST Council has proposed a GST exemption on third-party motor premiums collected for accident funds. This exemption aims to reduce the cost burden for insurance companies providing accident-related coverage, ensuring that premiums collected for these funds are not taxed under GST. This proposal is designed to simplify the taxation of insurance products and reduce costs for businesses and consumers. The move aligns with the government’s effort to improve the affordability and accessibility of insurance services, particularly for accident and health coverage, by easing the GST burden on such premiums.