Applicability of Sales Tax for Life Insurance Policies

[Rahul Bagaria]

My company is into the business of life insurance and service tax is not applicable in the state of J&K for life insurance companies.However there is GST @10.5% in the state of J&K for sale of life insurance products. We have sole few policies in Jammu though we do not have any place of business in J&K. These policies were sold from Punjab and Haryana to the people of J&K. Do we have to pay GST under these scenerio.

[YAGAY andSUN]

Insurance Policies are not being treated as 'Goods'.  Therefore, GST @ 10.50% will not be applicable.

AI Summary

Life Insurance Policies Sold in J&K from Punjab and Haryana Not Subject to 10.5% GST, Clarified as Not 'Goods' A company in the life insurance business queried about the applicability of GST in Jammu and Kashmir, where service tax is not applicable but a 10.5% GST is levied on life insurance products. The company sold policies to people in J&K from Punjab and Haryana without having a business presence in J&K. A respondent clarified that insurance policies are not considered 'goods,' thus the 10.5% GST would not apply to these transactions.