https://www.taxtmi.com/circulars?id=71500 Where a motor-vehicle insurance contract settles a total-loss claim after deducting agreed salvage or wreck value, ownership of the salvage remains with the insured. The deduction is a contractual deductible and is not consideration for a supply by the insurer; therefore, no GST liability arises for the insurer on that salvage value. Where the claim is settled for the full Insured's Declared Value without a salvage deduction, ownership passes to the insurer, and its subsequent disposal or sale of the salvage is an outward supply liable to GST. en-us Fri, 12 Jul 2024 00:00:00 +0530 Wed, 30 Sep 2026 16:51:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=71500 Where a motor-vehicle insurance contract settles a total-loss claim after deducting agreed salvage or wreck value, ownership of the salvage remains with the insured. The deduction is a contractual deductible and is not consideration for a supply by the insurer; therefore, no GST liability arises for the insurer on that salvage value. Where the claim is settled for the full Insured's Declared Value without a salvage deduction, ownership passes to the insurer, and its subsequent disposal or sale of the salvage is an outward supply liable to GST. Circulars GST - States Fri, 12 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/circulars?id=71500