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GST invoice mistake

Thomas Chandy (7 Points)

02 September 2023

We are a small private limited company and we paid an group employee Insurance premium worth 11lakhs plus gst .

But we paid 1 cheque to insurer. Now my accountant is asking for invoice in the name of 2 companies with right split.

The insurance company says it can't be done.

What is the solution?

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10 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 02 September 2023

As per Your query You took insurance for employees in a company.
In this scenario Insurance Company is Right...

Then, Why You split it two companies...???!!

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 02 September 2023

You have one company or two companies?

Are the Employees belongs to 2 companies?

Thomas Chandy (7 Points)
Replied 02 September 2023

Both companies belong to the same group but different gst number samesame signatory.

Last minute hurry isued 1 cheque now accountant requires 2 seperate invoices which insurane company refusez to give

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 02 September 2023

Then you may instruct the LIC to issue two invoices

Thomas Chandy (7 Points)
Replied 02 September 2023

Insurance company says since I issued 1 cheque they have already filed gst and now even though I have 2 gst numbers since I gave only 1 cheque it cannot be reversed.

I need a detailed solution please

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 02 September 2023

Here Insurance Company is Correct.

If You need to account the same in two companies. Then You will go through a JV...

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kiran (accountant) (444 Points)
Replied 02 September 2023

1) you transfer insurance expenses which are related to another company .GST benifit not transfer in this case.
2) you raised an invoice on your other company & they will be taking GST credit.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 02 September 2023

But if the insurance belongs to two companies then why one company cheque is given?

Thomas Chandy (7 Points)
Replied 02 September 2023

Sir I believe in case of group medical cover for employees of a company GST credit cannot be claimed.

Please correct me if I am wrong/right

My important question here is can the insurance company issue 2 invoices if I have given only one cheque especially now that they have accounted for the same.