Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

ITC FOR GENERAL INSURANCE SERVICE SUPPLIER

07 April 2020

Normally,when insurance services are taken on motor vehicles no ITC can be taken on that. But there is another point that when an insurance company which is giving general insurance services takes insurance for its motor vehicles,ITC is allowed on it. Why is it so?WHAT DIFFERENCE WOULD IT MAKE IF ANY OTHER GST SUPPLIER TAKES THOSE SERVICES AND INSURANCE SUPPLIER TAKES THOSE. BUSINESS IS A BUSINESS..

Reply
Follow
Share

2 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 08 April 2020

The Difference is the Insurance company is engaged in the business of Insurance ,they are further supplying insurance services , whereas the business man who is availing such services is a ultimate customer & not supplying it further.

Upgrade to CAclubindia Pro. Subscribe Now!

Harshit Acharya (404 Points)
Replied 08 April 2020

HOW IS IT A FURTHER SUPPLY? If an Insurance company is having a motor vehicle and takes Insurance for it. HOW IS IT FOR A FURTHER SUPPLY ?Is that,in the above mentioned case ITC is not available but when , an insurance company insures a motor vehicle ( of customer) with other insurance company .And the other insurance company takes amount from 1st insurance company. Which money is given to it by the customer.