sbi life insurance broker reverse charge

[Satbir singh wahi]

sir

insurance brokers are covered by reverse charge . Is there any change as sbi life insurance co. is asking brokers to put gst in invoice and pay. pls guide

[Alkesh Jani]

Sir, In terms of Notification No. 13/2017-CT (Rate) dated 28/06/2017 at Sl.No.7, Tax is to be paid by the Company under RCM. I have not came across any changes in the said Notification as amended from time to time. Our Expert are invited to correct me, if mistaken.

[KASTURI SETHI]

No change at all. Sh.Alkesh Jani Ji, is right.

[Satbir singh wahi]

Sir

Now I have received mail of notification Notification No. 3/2018- Central Tax (Rate) New Delhi, the 25th January, 2018,and 25th GST meeting press release.KIndly confirm.

[KASTURI SETHI]

Definition of 'Insurance Agent' has been widened. Nothing else. Regarding leviability of GST, Status quo has been maintained.

[Rajagopalan Ranganathan]

Sir,

Vide Sl. No.7 of Notification No.13/2017-Central Tax (Rate) dated 28.6.2017 as amended "services supplied by an insurance agent to any person carrying on insurance business, gst is payable by any person carrying on insurance business, located in the taxable territory. "

[Alkesh Jani]

Sir, I agree with our experts, by widening the meaning of Insurance agent, company cannot sift their liability to pay tax under RCM to the agent.

[Ganeshan Kalyani]

insurance company has to pay GST under RCM .

AI Summary

Reverse charge for insurance broking services remains with the insurer; brokers cannot be made to collect GST.
Services by insurance agents and brokers are taxable under the reverse charge mechanism, with the insurer liable to pay GST under Notification No.13/2017-Central Tax (Rate) (Sl. No.7); later amendments widening the definition of "insurance agent" do not shift that RCM liability to agents or brokers.