GST liability on salvage value in motor vehicle insurance claims turns on whether ownership stays with the insured or passes to the insurer. GST liability on salvage or wreck value in motor vehicle insurance claim settlements depends on the insurance contract. If salvage value is deducted from the claim as a pre-agreed deductible and ownership remains with the insured, the insurer is not liable to pay GST on that salvage value. If the claim is settled for the full insured declared value without deduction and the salvage passes to the insurer, GST is payable on the outward supply arising from 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.
GST liability on salvage value in motor vehicle insurance claims turns on whether ownership stays with the insured or passes to the insurer.
GST liability on salvage or wreck value in motor vehicle insurance claim settlements depends on the insurance contract. If salvage value is deducted from the claim as a pre-agreed deductible and ownership remains with the insured, the insurer is not liable to pay GST on that salvage value. If the claim is settled for the full insured declared value without deduction and the salvage passes to the insurer, GST is payable on the outward supply arising from disposal or sale of the salvage.
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