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 »
What is the leviability of GST on securitization transactions undertaken by banks? Securitized assets are in the nature of securities and hence not liable to GST. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for provision… Read More »
Whether GST will be levied on interchange fees on card settlement fees paid/shared by banks? Fees charged for card settlement is a consideration which is part of a separate transaction between the banks which are parties to this transaction and shall be liable to GST. This is a B2B supply and credit of this transaction is… Read More »
Whether GST will be levied on sale of re-possessed asset? Sale of repossessed asset falls within the scope of supply and will be chargeable to GST. Q 63 of GST FAQs on Financial Services Sector published by CBIC
Will GST be charged in transactions, where loan of one bank is taken over by another bank? GST will be chargeable on any transaction processing fees levied for such takeover of loans, but not on the interest component (as interest is exempted). Q 62 of GST FAQs on Financial Services Sector published by CBIC