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Urgent Question
Mr. Bhudev Aggarwal, an unregistered person receives commission of Rs. 21,00,000/-
as an insurance agent from insurance company. Will he be required to charge GST on
the same.
Replies (3)
Quick Summary
No GST is to be paid by the insurance agent. The Insurance company shall pay the GST under RCM
No...
Mr. Bhudev Aggarwal, being an unregistered person will not have to charge GST on Commission received from Insurance Company.
As per the Provision of Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28.06.2017, "Services Provided by an Insurance Agent to a Insurance Company located at the taxable territory, attracts GST on RCM basis. "
Hence, the GST is required to be paid by the INSURANCE COMPANY on Reverse Charge Mechanism ( RCM ) basis.
Mr. Bhudev Aggarwal, being an unregistered person will not have to charge GST on Commission received from Insurance Company.
As per the Provision of Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28.06.2017, "Services Provided by an Insurance Agent to a Insurance Company located at the taxable territory, attracts GST on RCM basis. "
Hence, the GST is required to be paid by the INSURANCE COMPANY on Reverse Charge Mechanism ( RCM ) basis.
RCM applicable
GST is paid by Insurance Company under RCM
Important Note : Selling policies via ECO operator not being licensed as Insurance agent then RCM is not applicable .
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