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GSTR 2A OF INSURANCE COMPANY

ansh 99 (229 Points)

17 August 2020

What would come in Gstr 2a of an insurance Company?
What are blocked credit in insurance company ??
require quick answers plz..

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8 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 17 August 2020

It's same as like normal Assessee/taxpayer..all Purchase /expenses ect.
blocked credit as per Sec.17(5) and Reversal of common credit used for Exempt as well as taxable Supply, if any

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ansh 99 (229 Points)
Replied 17 August 2020

I agree with expenses but sir what type of purchase ??
can u plz tell
its urgent

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 17 August 2020

Mainly
Insurance commision, Professional fee, legal fee, Advertisement, printing and stationary, telephone charges, BPO services, purchase of any assets like furniture fixtures, computer ect...

ansh 99 (229 Points)
Replied 17 August 2020

Hello sir
since i have came across a insurance company gstr 9 9c
i would like to share my knowledge on the same .
majority of the bill in their Gstr 2a is of claims paid by the company of the insured,others which u have mentioned are very less in number.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 18 August 2020

Good,.....
Claim paid is reflected in 2A of insurance Co.

means filed by insured person, who take insurance in his GSTR 1.....if insured company received claim,than that Company is suppose to disclose this in their GSTR 1..???
Are You checked, from whose GSTR 1 it's reflecting in GSTR 2A of insurance company.

is it's from that person who take insurance, or from head office of insurance Co. or from reinsurance company, if any.

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ansh 99 (229 Points)
Replied 19 August 2020

Sir suppose for an example , when a person who is insured repairs his bike which gets a cover for insurance , in such a case the person from where he will repair bike will issue a invoice against the insurance company this is how it works , now if insurance company pays full claim then it will settled on part of all parties linked and if claim is not fully satisfied in such case the repairer will get paid balance amount from the customer. other than this , surveyors commission makes it to a major part of GSTR 2A of insurance company ...

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 20 August 2020

Okkk...Good
means it's insurance contract between two party that if your asset got damaged, Insurance Co. will bare expenses of repair but upto certain limit as mentioned in contrast. So, repair expenses born by Insurance Co. is expenses of insurance Co. and reflected in GSTR 2A.

But Suppose, One GST Registered person took fire insurance, after that shop got wholly damaged due to fire and insurance Co. paid Claim of Rs.10,00,000 to insured person, than...?
is it reflected in GSTR 2A...?
insured person will file that 10 lakh in GSTR 1 as income like sale income...?
is it outward supply for insured person?

Bhavika Kothari (CA) (1258 Points)
Replied 21 August 2020

The invoices filed by your supplier will come in your 2A. Blocked credit is related to section 17(5), the credits where you cannot take ITC because these are not used further for business purpose