7 months ago
Bombay HC Stays GST Demand on Insurance Firms
The Bombay High Court has temporarily stopped the government from collecting over ₹10,000 crore in GST from 13 insurance companies.
These companies were being asked to pay GST on certain transactions, but the court said this goes against recent rules set by the GST Council.
The court wants the tax department to follow the rules and not collect this money until they decide on the matter.
This is good news for the insurance companies because they won't have to pay a lot of money right now, and it shows that the rules should be followed consistently.
Bombay High Court stayed over ₹10,000 crore in GST demands on 13 insurance companies.
The stay is on GST demands for co-insurance premiums and ceding commissions.
The court noted that CBIC circulars exclude these transactions from GST.
The GST Council had already clarified the position on these transactions.
The stay helps preserve the cash flows of the insurance companies.
- Who
- Bombay High Court, 13 insurance companies, Central Board of Indirect Taxes and Customs (CBIC)
- What
- Stay on GST demands for co-insurance and reinsurance transactions
- Where
- Bombay High Court
- When
- January 23, 2026
- Why
- To comply with CBIC circulars and GST Council decisions
Key facts
- Amount in Dispute
- Over ₹10,000 crore
- Insurance Companies Involved
- 13 companies including Aditya Birla Health Insurance, Oriental Insurance, SBI General Insurance
- Court's Action
- Ad-interim stay on GST demands
- CBIC Circulars
- October 11, 2024 and January 28, 2025
- GST Council's Role
- Excluded co-insurance premiums and ceding commissions from GST
- Next Hearing
- Not specified in the article
- Impact of Stay
- Preserves insurers’ cash flows and ensures consistent application of CBIC circulars
Quotes
Amit Maheshwari
Managing Partner at AKM Global
“The order reinforces that such circular-based guidance cannot be ignored during assessment proceedings.”
thehindubusinessline.com
Sources
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