Composite supply issue

Harsh ji,. your supply is composite supply. composite supply is supply of two or more goods or/and service at same price and such supply is in normal commercial practice. Tax rate is rate of principal elements .
in your case your supply is composite and rate of tax is rate of goods.

Value as per sec 15 is transaction value unless not related party or supply of goods or service for consideration other than cash .
you are also providing insurance service to your client .
such value will not add on transaction value if you are providing it as pure agent .

pure agent means supplying of goods or/and service to recipient procuring from third party.
also few condition need to be satisfied
1) you are providing such service or goods at request of your client.
2) your are just charging actual amount incurred by you on bill and no tax on that price .

in my best of opinion you are not not fulfilling above requirement then you need to pay tax on 205000 @ 5%.
and you can take credit of insurance amount if bill is issued your name.

I think that will do your purpose.
Thanking you

Thanks sudip ji for you reply. I would like to add more points. 1.we are a manufacturing unit 2. We buy bulk policy and not individual shipment policy. ( Like we pay 10k for sum insured 1cr goods value). It then keep reducing. 3. manufactured goods price fluctuate a lot. 4. We insist our customers to take Transit Insurance and they are ok with it. (Mostly long distance customers) 5. Our customers are also manufacturing units