On January 16, 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued Notification No. 06/2025- Central Tax (Rate), which exempts GST on contributions made by general insurance companies to the Motor Vehicle Accident Fund. This fund, constituted under Section 164B of the Motor Vehicles Act, 1988, aims to provide compensation and cashless treatment to victims of road accidents, including hit-and-run cases. The exemption applies to contributions from third-party motor vehicle insurance premiums collected by insurers. This amendment further alters previous provisions of the 2017 GST notification, specifying that these services will be treated as exempt, ensuring no GST is levied on contributions to the fund. Additionally, it includes modifications to other sections of the GST rates, including updates related to transmission or distribution services and training partners approved by the National Skill Development Corporation.
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 06/2025- Central Tax (Rate) | Dated: 16th January, 2025
G.S.R. 41(E).—In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification number 12/2017-Central Tax (Rate), of the Government of India, in the Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:—
(i) In the said notification, in the table, –
(A) against serial number 25A, in column (3), for the words “transmission and distribution” wherever occurring, the words “transmission or distribution” shall be substituted;
(B) after serial number 36A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:-
| (1) | (2) | (3) | (4) | (5) |
| “36B | Heading 9971 or Heading 9991 |
Services of insurance provided by the Motor Vehicle Accident Fund, constituted under section 164B of the Motor Vehicles Act, 1988 (59 of 1988), against contributions made by insurers out of the premiums collected for third party insurance of motor vehicles. | Nil | Nil” |
(C) against serial number 69, in the entry in column (3), after item (e), the following item shall be inserted, namely :-
“(f) a training partner approved by the National Skill Development Corporation,”
(ii) in paragraph 2 of the said notification,-
(A) item (w) shall be omitted with effect from the 1st day of April, 2025;
(B) after item (zj), the following item shall be inserted, namely: –
“(zja) “insurer” has the same meaning as assigned to it in sub-section (9) of section 2 of the Insurance Act, 1938 (4 of 1938).”.
[F. No. 190354/2/2025-TO (TRU-II)]
MD. ADIL ASHRAF, Under Secy.
Note:- The principal notification number 12/2017 – Central Tax (Rate) was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 691 (E), dated the 28th June, 2017 and was last amended vide notification number 08/2024-Central Tax (Rate) published in the Gazette of India, Extraordinary, vide number G.S.R. 620(E), dated the 8th October, 2024.
