Delhi High Court: GST exemption on 'reinsurance services' in relation to govt insurance schemes applies with retrospective effect from July 1, 2017

The Delhi High Court in the case AXA France Vie-India v. Union of India & Ors observed and has held that GST exemption on foreign reinsurance services in relation to government insurance schemes applies with retrospective effect, from July 1, 2017 onwards.

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The court stated that this was in light of the fact that though the exemption was notified only on July 27, 2018, the government regularized GST liability on such services which being for the period from July 01, 2017 till July 26, 2018.

The court stated that entry 40 in Notification No. 12/2017 exempts GST liability on reinsurance services provided to the Government under insurance schemes for which total premium is paid by the Government.

The Division bench comprising of Justice Yashwant Varma and Justice Ravinder Dudeja was hearing the present matter.

The bench in the case stated that though Entry 40 was included in the above notification dated 28 June 2017, only with effect from July 27, 2018.