INSURANCE AGENT CROSING 20 LAKH

[RAHUL GAIKWAD]

My client have crossed the 20 Lakh limit of GST. He is Insurance Commision Agent. He is Regularly Filing GST Returns Since Jan-2019. His company Rejects his Reimbursement of GST. and Said that Insurance Commission attracts Reverse Charge. Whats is actual process.?

AI Summary

Insurance agent must register under Section 24(vii) CGST Act; no GST exemption for commission under RCM rules. An insurance commission agent has exceeded the 20 lakh threshold for Goods and Services Tax (GST) and is facing issues with reimbursement from his company, which claims that insurance commission is subject to Reverse Charge Mechanism (RCM). It was clarified that services of insurance agents fall under RCM as per notification No. 13/17-CT(Rate), and no threshold exemption applies. The agent must fill in the gross receipt under 'Total Taxable Value' in Table No. 3.1 of GSTR 3B. Additionally, compulsory registration is required for intermediaries under Section 24(vii) of the CGST Act, 2017.