The Central Board of Indirect taxes and Customs (CBIC) on the recommendation of the 55th GST Council Meet, notified the GST exemption on third-party motor vehicle premiums collected towards motor vehicle accident fund.
No GST shall be payable on the contributions made by general insurance companies from the third-party motor vehicle premiums collected by them to the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act, 1988.
This fund is constituted for providing compensation/cashless treatment to the victims of road accidents including hit and run cases.
Notification Details
Notification No. 06/2025- Central Tax (Rate)
Date: 16/01/2025
