https://www.taxtmi.com/circulars?id=70831 GST treatment of motor-vehicle salvage depends on contractual ownership after claim settlement. Where the insurer deducts agreed salvage value from a total-loss claim, salvage remains with the insured; the deduction is a contractual deductible, not consideration for a supply by the insurer, and no GST liability arises for the insurer. Where the insurer settles the claim for the full declared vehicle value without a salvage deduction, salvage becomes the insurer's property. The insurer must discharge outward GST on its subsequent sale or supply of that salvage. en-us Mon, 15 Jul 2024 00:00:00 +0530 Tue, 18 Aug 2026 17:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=70831 GST treatment of motor-vehicle salvage depends on contractual ownership after claim settlement. Where the insurer deducts agreed salvage value from a total-loss claim, salvage remains with the insured; the deduction is a contractual deductible, not consideration for a supply by the insurer, and no GST liability arises for the insurer. Where the insurer settles the claim for the full declared vehicle value without a salvage deduction, salvage becomes the insurer's property. The insurer must discharge outward GST on its subsequent sale or supply of that salvage. Circulars GST - States Mon, 15 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/circulars?id=70831