Clarification on taxability of wreck and salvage values in motor insurance claims

Last updated: 27 June 2024

Save Share

Quick Summary

This notification clarifies the Goods and Services Tax (GST) treatment for salvage or wreck values in motor insurance claims. It addresses queries from the trade and tax authorities regarding whether insurance companies need to pay GST on the salvage/wreckage value when assessing damages to insured motor vehicles. The clarification covers both total loss and partial loss situations.

F.No. CBIC-20001/4/2024-GST Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs GST Policy Wing ***** North Block, New Delhi Dated the 26th June, 2024 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/Commissioners of Central Tax (All) The Principal Directors General/ Directors General (All) Madam/Sir, Subject: Clarification on taxability of salvage/ wreck value earmarked in the claim a

Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Notice & Circular Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

The notification clarifies the taxability of salvage or wreck values in motor insurance claims under GST.

It is addressed to the Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/Commissioners of Central Tax and Principal Directors General/Directors General.

The damages are classified into Total Loss/Constructive Total Loss or Cash Loss, and Partial Loss.

The clarification concerns the salvage/wreckage value earmarked in the claim assessment for damages to a motor vehicle.

Yes, representations have been received from the trade and field formations seeking this clarification.

Notification No : 215/9/2024-GST
Source : https://taxinformation.cbic.gov.in/view-pdf/1003206/ENG/Circulars

Attached File : 322600_11303_circular_no_215.pdf

downloaded 12 times

206 Views Comment Share GST Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments