How to claim tax exemption for GST on Commission to Insurance Agents?

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This query is : Resolved

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A salaried individual running a TATA AIA agency is asking if they can claim GST deducted from their commission on their Income Tax Return, as they do not have GST registration. The consensus suggests that the insurance company should pay GST on commission under the Reverse Charge Mechanism (RCM) and not deduct it from the agent's commission. The user notes this deduction occurred on specific rider commissions.

Janardhan Torkad

Janardhan Torkad (Querist)

31 March 2024 Dear Experts,
I am a Salaried Person also running the TATA AIA agency. The TATA AIA deducted GST from my commission.
I don't have any GST registration.
Can I claim GST deducted by TATA AIA Insurance company while Income Tax Return?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 April 2024 GST can't be deducted from your commission they have to pay it under RCM.

Janardhan Torkad

Janardhan Torkad (Querist)

01 April 2024 Respected sir,
Yes, they should pay GST on commission by RCM from their pocket but it didn't happened.
TATA AIA deducted GST from my commission.
P.S.
Note: The GST is deducted on specific commission which is received on specific riders.
Please refer https://www.caclubindia.com/forum/gst-on-commission-to-insurance-agents-506852.asp

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