Insurance claim Received from Freight Forwarder

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.