Insurance claim Received from Freight Forwarder

Is GST applicable on Insurance claim received from freight forwarder as per agreement
Replies (4)
Quick Summary
This discussion explores whether Goods and Services Tax (GST) is applicable on insurance claims received from a freight forwarder, specifically in relation to a freight agreement rather than a direct insurance policy. While GST is typically levied on insurance premiums, its application to claims is subject to interpretation. The content suggests that if the claim arises from a freight agreement for damages during transit, it could be considered a taxable supply, with GST calculated on the claim amount. However, it also notes that actionable claims, excluding lotteries and betting, are generally not considered supplies under Schedule 3 of GST law, adding complexity to the definitive answer.

In insurance contracts gst is levied on insurance premium.

whether gst will apply on insurance claim as well is a subject matter of interpretation. if we read meaning of supply in gst law it is leading to conclude that gst may apply.

but still i cant say with certainity.
Insurance claim received is not against Insurance Policy taken, it is against freight agreement with Safe express Pvt Ltd for minor damages in transit
In such case it will definitely be a taxable supply and you will have to charge gst.
the cmail amount received will be inclusive of tax.
tax will be 18/118*claim amount
Actionable claims other than lottery betting are not supply as per schedule 3

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