gstr 1 in case of insurance company

gst rate on endowment insurance policy is @ 4.5&for renewal @ 2.25.But at the time of filing GSTR 1 above mentioned rate are not reflected. please let me know the procedure of filing GSTR 1 considering the above mentioned rate.
Replies (1)
Dear Vikas Goel

There is no such Rates prescribe in any Notification for Insurance Policy .

As per Rule 32(4) (c) of CGST Act :
The GST is to be charge on 25℅ of the premium charged from the policy holder in First Year & on subsequent premium its 12.5% .

Now Lets Understand with Example : Suppose First premium amount is 50000/- now the GST will be Applicable 18% on value of 25% of 50000/-

50000 X 25% = 12500/-

GST 18% on 12500/- = 2250/-

Hence Report Taxable value Against 18%slab 12500/- & under invoice value put 50000/-

Note : 2250/- is 4.5% of 50000/-


I hope i clarify your query with Example

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