Collection of Premium and GST amount from Employees for Insurance Top up

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....ollection of Premium and GST amount from Employees for Insurance Top up <br> Query (Issue) Started By: - Sameer Annigeri Dated:- 22-8-2025 Goods and Services Tax - GST <br> Got 4 Replies <br> GST<br> <br> Company collects Insurance premium amount and GST from employees for TOP UP of the existing Insurance and the same amount will be paid to the insurance company. Following is the example. Premium ....

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....amount is 100 and 18 GST is collected from Employees. Total 118 rupees will be paid the insurance company.&nbsp; Insurance company is issuing invoice with applicable GST @ 18%. In this case whether company has to pay the GST amount18 rupees to the department which is collected from employee.&nbsp; Kindly check and provide the details --Reply By: Sadanand Bulbule The Reply: Employer is only a pu....

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....re agent collecting premium from the employee and remitting to insurer. Since insurer issues policy and charges GST @ 18%,&nbsp; no further GST liability arises on employee, provided no margin/commission is retained. --- Sub-Reply By: Sameer Annigeri The Sub-Reply: Dear Sir, thanks for the reply. The insurance amount will be paid by the Employer to the Insurance Company on behalf of Employees. ....

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....Afterwards employer is&nbsp; planning to collect the premium amount and GST amount from the employee. In this case whether GST amount collected from Employee to be paid to the government by employer? --Reply By: Sadanand Bulbule The Reply: Best practice: Employee should recover only the actual insurance premium (on cost-to-cost basis) without charging GST. If GST is shown/collected separately f....

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....rom the employees, then it must be deposited with Government (even though it was not required in the first place). --Reply By: Shilpi Jain The Reply: It does not matter that the amount is collected subsequently from the employee. if the exact amount is collected and paid to the insurance company then there will be no liability on the employer can be regarded as a pure agent. <br>***<br> ....

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