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Insurance claim Received from Freight Forwarder

Vipul Acharya (Account Officer) (652 Points)

27 July 2021

Is GST applicable on Insurance claim received from freight forwarder as per agreement

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4 Replies

veerendar singh (tax consultant) (3306 Points)
Replied 28 July 2021

In insurance contracts gst is levied on insurance premium.

whether gst will apply on insurance claim as well is a subject matter of interpretation. if we read meaning of supply in gst law it is leading to conclude that gst may apply.

but still i cant say with certainity.

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Vipul Acharya (Account Officer) (652 Points)
Replied 28 July 2021

Insurance claim received is not against Insurance Policy taken, it is against freight agreement with Safe express Pvt Ltd for minor damages in transit

veerendar singh (tax consultant) (3306 Points)
Replied 28 July 2021

In such case it will definitely be a taxable supply and you will have to charge gst.
the cmail amount received will be inclusive of tax.
tax will be 18/118*claim amount