GST on Insurance Commission paid to Bank

[sumanta nayak]

1.Is RCM applicable on Insurance Commission paid to banks?

2.Is GST appicable on Commission on Exempted Insurance scheme like PMJJBY

[Shilpi Jain]

Services by an insurance agent to an insurance company i.e. person carrying insurance business is nly liable under RCM

Need clarity on 2nd question.. exempted insurance scheme? Exempt under which law?

[YAGAY and SUN]

Please elaborate your queries to enable us to revert.

[sumanta nayak]

Is banking companies are insurance agentd as per definition provided in RCM notification?

AI Summary

Reverse charge mechanism on insurance commission: applicability to banks and GST treatment for exempt insurance schemes. Whether the reverse charge mechanism applies to insurance commission paid to banks and whether GST applies to commission on allegedly exempt insurance schemes are queried. The operative position noted: services by an insurance agent to an insurer (a person carrying on insurance business) are liable under reverse charge, subject to verifying whether a banking company meets the notification's definition of 'insurance agent' and whether the specific insurance scheme is statutorily exempt.