GST Treatment of Insurance Commission for Existing GST Holder

Save Share

This query is : Resolved

Quick Summary

Insurance commission to agents is covered under reverse charge, so GST is paid by insurer. Agent need not pay output tax but must report commission in GSTR-1 Table 4B. Delayed reporting does not cause double taxation or mismatch for insurer.

Javed Memon

Javed Memon (Querist)

22 April 2026 GST registration for my previous business of “Davat Soda”, which is now completely shut down. However, GST registration is still active (regular scheme).

Currently, working as an insurance agent (vehicle insurance), and receiving commission income from insurance companies.

Whether I need to report this insurance commission in GSTR-1 or GSTR 3B

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

22 April 2026 No GST is payable by the insurance agent on commission received from the insurance company, since services of an insurance agent are covered under reverse charge and tax is payable by the insurance company. However, the commission should be reported in GSTR-1 under Table 4B (B2B supplies attracting reverse charge). In GSTR-3B, the agent should not pay output tax on such commission.

Message likes : 1 times

Javed Memon

Javed Memon (Querist)

22 April 2026 If I file GSTR-1 now (for FY 2025-26) and report this commission under Table 4B, while the insurance company has already discharged GST under RCM earlier, will this result in double taxation or duplication of liability for the company?

Also, since the reporting may happen at a later date than the company’s RCM payment, will it create any mismatch or compliance issue for the insurance company?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 April 2026 Insurance companies pay RCM on monthly aggregate basis in GSTR-3B, not per supplier's invoice. Your later GSTR-1 reporting just provides invoice-level details for their records. Table 4B details appear in company's GSTR-2A as outward supplies under RCM — this is expected and helps them reconcile their RCM liability, not create mismatch.
Rule 88C checks relate to tax liability mismatches, but RCM supplies are explicitly listed as an acceptable reason for timing differences since supplier pays zero tax.

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 April 2026 Insurance companies expect agents to report commission in GSTR-1 Table 4B:
They use your GSTR-1 data to reconcile their RCM payments
Your delayed reporting (mid-year for FY 2025-26) simply updates their records
No penalty or notice gets triggered since no tax liability exists on your side
The system is designed this way intentionally: recipient pays tax + supplier discloses supply, so timing differences don't create compliance issues.

Message likes : 1 times

Javed Memon

Javed Memon (Querist)

09 May 2026 Thanks a lot sir for replies

Message likes : 1 times

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 May 2026 You are welcome..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now