https://www.taxtmi.com/circulars?id=71733 Where a policy limits the insurer's liability to the Insured's Declared Value less the salvage or wreck value, deduction of that value from the claim settlement amount leaves ownership of the salvage with the insured. The deduction does not constitute consideration for a supply by the insurer, and no GST liability attaches to the insurer in respect of that salvage value. Where a claim is settled for the full Insured's Declared Value without deducting salvage value, ownership passes to the insurance company, and disposal or sale of the salvage constitutes an outward supply for GST. en-us Tue, 14 Oct 2025 00:00:00 +0530 Mon, 26 Oct 2026 10:17:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=71733 Where a policy limits the insurer's liability to the Insured's Declared Value less the salvage or wreck value, deduction of that value from the claim settlement amount leaves ownership of the salvage with the insured. The deduction does not constitute consideration for a supply by the insurer, and no GST liability attaches to the insurer in respect of that salvage value. Where a claim is settled for the full Insured's Declared Value without deducting salvage value, ownership passes to the insurance company, and disposal or sale of the salvage constitutes an outward supply for GST. Circulars GST - States Tue, 14 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/circulars?id=71733