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Value of Service by Life Insurance Business as per GST valuation rules – LIC
Introduction
Valuation of Life insurance business is treated as a special case under GST and hence, should be dealt in consonance with the GST Valuation Rules. Let us see how valuation for Life Insurance works under GST
How Valuation works for Life Insurance Business in GST
The value of supply of services in relation to life insurance business shall be the gross premium charged from a policyholder reduced by the amount allocated for investment, or savings on behalf of the policyholder if such amount is intimated to the policyholder at the time of supply of service.
In the case of single premium annuity policies other than (1), ten per cent of the single premium charged from the policyholder.
In all other cases, twenty-five percent of the premiums charged from the policyholder in the first year and twelve and a half percent of the premium charged from the policyholder in subsequent years.
In other words, valuation in all other cases shall be in the following way:
- 25% of the Premium charged from the policy in first year
- 12.5% in the subsequent years
GST Tax rate on Life Insurance Business
As per the new GST tax rate, the GST tax rate shall be 18% with full ITC on Life insurance Business.
Whether Input Tax Credit is available to Air travel Agents
Yes, full ITC is available to the air travel agents
Conclusion
In case of any doubt, you may email us at info@hubco.in.
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