- Circular No. 214/8/2024-GST issued by CBIC explains treatment of life insurance premiums for GST
- Part of life insurance premium not included in taxable value is not exempt or non-taxable supply
- Definition of ‘life insurance business’ includes policies with investment and insurance components
- Rule 32(4) of CGST Rules determines taxable value of life insurance services
- Businesses do not need to reverse ITC for part of life insurance premiums not in taxable value
- Simplifies compliance for insurance companies, ensures uniformity in GST laws application
- Policyholders can claim ITC without reversal for investment component of premiums
- Circular provides clear guidance for tax professionals on ITC claims related to life insurance premiums
- Review life insurance policies, update compliance procedures, consult tax advisors for seamless transition.
Source: rmpsco.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
