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How can a Bank as a commission agent for an insurance company file gst for invoices raised ?

Others 354 views 1 replies

If "X" is a bank and providing services to an insurance company i.e.,"Y" as a commission agent. Y has to pay commission to X based on the business or policy volume that X did. To get commission from Y, X has to raise GST invoice monthly to get the payment from insurance company Y. My doubt is here, X is a bank and provided services to an insurance company which pays commission to the bank which is receivable income. How can a bank raise a gst invoice on the services provided which are not shown in profit & loss account and the commission income which is a receivable item. 

Please guide me through the necessary entries in this case. Thank you.

Replies (1)
I think in this case RCM provision shall apply and Insurance company needs to pay gst on RCM basis. Further, self invoice shall also be generated by Insurance company for the same.


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