Insurance Agent Under Gst


Insurance Agent Under Gst. I reproduce below the said definition for ready reference. The rate of gst on commission is 18%.

GST exemption on Advance amount payable in installments
GST exemption on Advance amount payable in installments from

Team masters india at april 27, 2022. Resolved report abuse follow query ask a query querist : Insurance commission is liable to gst under reverse charge.

In This Article, We Are Discussing Such Goods And Services Which Have Been Notified By The Central Government For The Purposes Of Rcm.

Also, the application of gst on the total premium is different under different scenarios. Ashwin as it’s agent for insurance business, lic ltd will be liable to pay tax on rcm basis. Remember that insurance commission is subject to gst from re.1.

The Rate Of Gst On Commission (Agent) Services Is 18 Per Cent.

A life insurance company is deducting 11% gst & 5% tds at the time of payment of insurance commission to agent. Gst rate for insurance policies is 18%. Pure agent under gst act.

These Services Are Not Financial Services.

Therefore, both life and general insurance policies will have tax levied as per gst at 18%. Under gst rules, taxes will be levied as per a. There is no exemption or threshold limit like rs.20 lakh in mutual funds for insurance agents.

But, As Per The Notification 13/2017 Of Gst Act, Insurance Company Is Liable To Pay Gst On Behalf Of The Agent Under Rcm.

Resolved report abuse follow query ask a query querist : Services of commission agent in retail trade fall under 99621. Gst @18% is levied on such reduced taxable value.

One Of My Client Is An Insurance Agent And Receiving 30L As Insurance Commission, Insurance Company Is Insisting Him For Gst Registration And Pay The Tax.

“ (5) “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other. They pay gst from your commission income along with tds before disbursing the net. Currently, insurance companies follow reverse charge mechanism (rcm) on commission of up to rs.20 lakh i.e.