Company collects Insurance premium amount and GST from employees for TOP UP of the existing Insurance and the same amount will be paid to the insurance company. Following is the example.
Premium amount is 100 and 18 GST is collected from Employees. Total 118 rupees will be paid the insurance company. Insurance company is issuing invoice with applicable GST @ 18%.
In this case whether company has to pay the GST amount18 rupees to the department which is collected from employee.
Kindly check and provide the details
Employer recovering employee insurance premiums may be treated as pure agent; separately charged GST must be remitted An employer paid employee insurance premiums to an insurer and sought to recover both the premium and GST from employees; the insurer issues an invoice charging GST. Respondents state the employer can be treated as a pure agent if it merely collects and remits the insurer's charges without markup, in which case the employer has no additional GST liability. However, if GST is separately shown or collected from employees, the employer must deposit that GST with the tax authorities. Best practice is to recover only the actual premium on a cost-to-cost basis and avoid separately charging GST. (AI Summary)
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