Taxation of Corporate agent to insurance company

[Tushara Nair]

How is GST applicable for Corporate agents to insurance company? Is it on RCM basis wherein the insurance company would pay tax or on the basis of forward charge where in the corporate agent is liable to pay tax.Is there is any circular pertaining to this by the Finance ministry.

AI Summary

GST Confusion: Are Corporate Agents or Insurance Companies Liable for Tax? Notification No.13/2017 Suggests Insurance Companies via RCM. A query was raised regarding the applicability of GST for corporate agents to insurance companies, questioning whether it should be on a reverse charge mechanism (RCM) basis, where the insurance company pays the tax, or on a forward charge basis, where the corporate agent is liable. One response referenced Notification No.13/2017, indicating that the liability falls on the insurance company under RCM. Another response stated that the corporate agent is liable to pay the tax. The discussion reflects differing interpretations of GST obligations for corporate agents in the insurance sector.