Determination of value of supply in relation to Life Insurance business [Rule 32(4) of CGST Rules]

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....l benefits of risk coverage and investment - Taxable value is gross premium charged less amount allocated for investments or savings if such allocation is intimated to the policy holder at the time of collection of premium. * Single premium annuity policy where allocation for investments and savings is not intimated to the policy holder - taxable value is 10% of the single premium charged from t....

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.... which is not included in the taxable value as determined under Rule 32(4) of CGST Rules, cannot be considered as pertaining to a non-taxable or exempt supply and therefore, there is no requirement of reversal of input tax credit as per provisions of Rule 42 or rule 43 of CGST Rules, read with Section 17(1) &(2) of CGST Act, in respect of the said amount. Example :- Max Life Insurance Company Ltd....