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Commissioned earned by Insurance Agent

Akhilesh Kumar Bhuchar (Properietor)     15 April 2018

Akhilesh Kumar Bhuchar
 22 points

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CBEC has clarified Insurance agent as service provider & Insurance company as recepient of service.

GST on commission to the agent is payable by the recepient i.e. Insurance company.

However, the provisions of section 9 (4) were deferred till 31.3.18 vide notification no.38/2017 dtd 13.10.17

Does it mean that during the period RCM provisions remained deferred, neither the Agent nor the Company is liable to pay GST particularly if the Agent is unregisterd.

Is the Insurance co. justified in deducting the JST @ 18% from the amount of commission or it would be voilative of the law i.e. GST Act.


Shivam gupta (student)     15 April 2018

Shivam gupta
 16 likes  246 points

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the reverse charge in case of insurance co is governed by section 9(3).
govt has deferred the provision of section 9(4). provisions of 9(3) has not been deferred by the govt.
Therefore, insurance co is liable to pay tax on reverse charge.

1 Like

Ashish Khillan (Gaining knowledge)     20 June 2018

Ashish Khillan
Gaining knowledge 
 56 likes  1039 points

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agent have to mandatory register under GST also


Ravi SADhiyan (CA Final)     20 June 2018

Ravi SADhiyan
CA Final 
 220 likes  3729 points

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GST law, the scope of reverse charge is expanded to include:
(a) Goods (in addition to services) that may be notified, even if the supplier is registered;
(b) Services (in addition to goods), for taxation on reverse charge basis where the supplier is unregistered, and the recipient is registered. [ kept in abeyance till 30th June 2018]

Insurance Still Liable to pay tax under RCM

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