GST on life insurance agency under RCM

This discussion explores whether a life insurance company is correctly deducting GST and TDS on agent commissions under the Reverse Charge Mechanism (RCM). The company deducts 11% GST and 5% TDS, stating they will charge 11% GST from the agent while bearing 7% themselves. Participants question this approach, suggesting the company should pay the full RCM GST amount upfront and then claim it as input tax credit, potentially leading to disallowed credit if not handled correctly. It's also highlighted that input tax credit for life and health insurance may be blocked under Section 17(5) of the CGST Act.