TaxTMI 
TaxTMI 
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.
Insurance policies not treated as goods, so GST not applicable on inter-state sale of life insurance policies. The central operative point is classification: insurance policies are not treated as goods for sales/GST purposes, and therefore a state goods tax asserted on sale of life insurance products will not apply; nexus or absence of place of business in the purchaser's state does not change that classification. (AI Summary)
