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 acting as pure agent for employee insurance top-ups incurs no separate GST if no margin; must remit if collected An employer arranging employee insurance top-ups paid to an insurer that invoices GST bears no separate GST liability if it acts as a pure agent and does not retain any margin or commission; the insurer's invoice suffices. Best practice is for the employer to recover only the actual premium on a cost-to-cost basis without separately charging GST. If the employer does show or collect GST separately from employees, that collected GST must be deposited with the tax authorities, because collecting it creates an obligation to remit. (AI Summary)
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