GST UPDATE

????Desk of CA. Praveen Sharma Series-593????

DELHI HIGH COURT IN THE CASE OF Axa France Vie-India  Section 168A of the GST Act

?In the case heard by Justice Yashwant Varma, the petitioner, a multinational insurance company registered as a foreign reinsurance branch with IRDAI, sought multiple reliefs, primarily challenging the GST demand for non-payment of IGST on reinsurance services for the period 01 July 2017 to 25 July 2018. 

?The petitioner argued that subsequent amendments and exemptions to government insurance schemes should be applied retrospectively, exempting these services from GST.

?The GST Council and the Union Government clarified and regularized GST liability for reinsurance services related to government insurance schemes for the specified period. Based on these clarifications and recommendations from the 53rd GST Council meeting held on 22 June 2024, a circular was issued on 15 July 2024 to confirm this regularization.

?The court quashed the impugned order dated 20 December 2023, stating that it could not be sustained in light of the subsequent clarifications. The petition was allowed, and the petitioner was granted consequential reliefs.

CA. Sharma Praveen

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