GST on Incentive amount to insurance agent

[SHARAD ANADA]

GST Query

General Insurance Agent got *incentive* for his performance in form of out of country trip with family and deducted TDS under section 194R of IT Act 1961.

Total incentive amount is Rs 22 lakh for each and every Agent. Is GST applicable on incentive amount? If yes then GST on RCM basis and insurance company will pay GST or is GST payable on forward charge basis and GST is to be paid by insurance Agent.

Insurance company debited such amount as Conference exp. in their books of accounts.

AI Summary

Insurance Agent's Trip Incentive Subject to GST; Insurance Company to Pay Under RCM per Section 194R IT Act. An insurance agent received an incentive in the form of an international trip, valued at Rs 22 lakh, with TDS deducted under section 194R of the IT Act. The query concerns whether GST applies to this incentive and, if so, whether it should be paid by the insurance company under the Reverse Charge Mechanism (RCM) or by the agent on a forward charge basis. Respondents agreed that GST is applicable and should be paid by the insurance company under RCM, despite the company recording the expense as a conference expense.