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Urgent Question

Rahul123 (student) (22 Points)

08 April 2020

Mr. Bhudev Aggarwal, an unregistered person receives commission of Rs. 21,00,000/- as an insurance agent from insurance company. Will he be required to charge GST on the same.

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3 Replies

Spurto Consultancy Services (Consultant) (1891 Points)
Replied 08 April 2020

No GST is to be paid by the insurance agent. The Insurance company shall pay the GST under RCM

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Shivam RC (Student) (23683 Points)
Replied 18 April 2020

No...

Mr. Bhudev Aggarwal, being an unregistered person will not have to charge GST on Commission received from Insurance Company.

As per the Provision of Section 9(3) of the CGST Act 2017 read with Notification No. 13/2017 - Central Tax ( Rate ), dated 28.06.2017, "Services Provided by an Insurance Agent to a Insurance Company located at the taxable territory, attracts GST on RCM basis. "

Hence, the GST is required to be paid by the INSURANCE COMPANY on Reverse Charge Mechanism ( RCM ) basis.