Whether ITC will be allowed on motor garage services used by insurance company for claim settlement? Yes, ITC will be allowed on services of motor garage used by an insurance company for claim settlement. Q 75 of GST FAQs on Financial Services Sector published by CBIC
What is the time of supply of services for deposits and advances in cases of the recipient issuing a bank guarantee or making a deposit before assumption of risk and issuance of a policy? As per the proviso to Section 2(31) of the CGST Act, 2017, a deposit given in respect of the supply of goods or… Read More »
In the case of group insurance policies, a Master Policy is issued; the beneficiaries of the Master Policy may be located in more than one State. In such cases, what will be the place of supply of services? In the case of issuance of Master / Group Policy to a registered person where the premium charged is a… Read More »
Can the input tax credit of Krishi Kalyan Cess be carried forward? No. It is not permitted in terms of section 140(1) of the CGST Act, 2017 read with Rule 117(1) of the CGST Rules, 2017. Q 72 of GST FAQs on Financial Services Sector published by CBIC
When service tax was paid on or before 30th June, 2017 for the services to be provided, but subsequently not provided, whether refund claim can be made under Section 142(5) of the CGST Act? Section 142(5) of the CGST Act, 2017 specifically provides for refund of tax paid under the Finance Act, 1994 in respect of… Read More »
What would be the time of supply of life insurance services? Insurance policies are contracts for indemnifying any loss suffered by the policyholder. The policyholder is required to pay a premium at the time of inception of the policy. Renewal premiums are required to be paid on periodical basis during the tenure of the policy. For… Read More »
Will the requirements of Letter of Undertaking or Bond be required to be complied with in the case of Life Insurance Premium where the conditions of export of services are satisfied before or at the time of supply of the Life Insurance Service? Yes. As per Section 16(3) of the IGST Act, 2017, read with Rule… Read More »
Whether insurance policies issued to Non-Resident Indians, where the premium is paid through the Non-Resident External Bank account, will be ‘export of services’? Would the insurance premiums be taxable in cases where the same is not received in convertible foreign exchange or from the NRE Accounts? No. The amounts paid from the Non-Resident External Accounts are paid in … Read More »
Whether commission paid to insurance agents shall be construed as supplies received under Section 9(3) of CGST Act, 2017? If yes, whether the Life Insurance Company can raise a consolidated invoice for such commission payments? Sr. No. 7 of notification No. 13/2017-Central Tax (Rate), dated 28th June, 2017 as amended covers supplies received from Insurance Agents and… Read More »
What is the location of the supplier of service for fund management charges in ULIP policies? The fund management charges are charges towards managing and administering the fund. These funds are managed by the Fund Management team. The location of the supplier of service for fund management charges shall be the location / office which manages the… Read More »