TaxTMI 
TaxTMI 
1.Is RCM applicable on Insurance Commission paid to banks?
2.Is GST appicable on Commission on Exempted Insurance scheme like PMJJBY
GST on Insurance Commission paid to Bank
08 Jun 2021 
3 Replies 
1992 Views Asked by
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. (AI Summary)
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. (AI Summary)