Supply of salvage: insurers must discharge GST when they acquire and sell wreckage after full claim settlement. Where an insurance contract provides for deduction of salvage/wreck value from the claim (deductible), ownership of the wreckage remains with the insured and the insurer has no GST liability on that deducted value; however, if the insurer settles the full insured declared value without deducting salvage, the salvage vests in the insurer and the insurer must discharge GST on disposal or sale of the salvage.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Supply of salvage: insurers must discharge GST when they acquire and sell wreckage after full claim settlement.
Where an insurance contract provides for deduction of salvage/wreck value from the claim (deductible), ownership of the wreckage remains with the insured and the insurer has no GST liability on that deducted value; however, if the insurer settles the full insured declared value without deducting salvage, the salvage vests in the insurer and the insurer must discharge GST on disposal or sale of the salvage.
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