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1: What is the location of the supplier of service for fund management charges in ULIP policies?
| The
fund management charges are charges towards managing and administering the
fund. These funds are managed by the Fund Management team. The location of
the supplier of service for fund management charges shall be the location /
office which manages the fund. |
2: Will the requirements of Letter of Undertaking or Bond be required to be complied with in the case of Life Insurance Premium where the conditions of export of services are satisfied before or at the time of supply of the Life Insurance Service?
| Yes,As
per Section 16(3) of the IGST Act, 2017, read with Rule 96A of the CGST
Rules, 2017, an exporter is required to submit a Letter of Undertaking or
Bond in case the export of service is made without payment of integrated
tax. |
3: "What would be the time of supply of life insurance services? "
| Insurance
policies are contracts for indemnifying any loss suffered by the
policyholder. The policyholder is required to pay a premium at the time of
inception of the policy. Renewal premiums are required to be paid on
periodical basis during the tenure of the policy. For renewal of the policies
the policyholders are allowed grace period ranging from 15 days to 30 days in
accordance with the IRDA (Protection of Policyholders’ Interests) Regulation,
2002. The time of supply of life insurance services to the policy holders would be as under:- (a) New Policy – At the time of issuance of the policy; (b) Renewal of Policy – The time of issuance of renewal notice for insurance premium; (c) Other charges including ULIP charges – At the time of levy or recovery of the charges from the policyholder. |
4: "When service tax was paid on or before 30th June, 2017 for the services to be provided, but subsequently not provided, whether refund claim can be made under Section 142(5) of the CGST Act? "
| Section
142(5) of the CGST Act, 2017 specifically provides for refund of tax paid
under the Finance Act, 1994 in respect of services not provided. The same
shall be disposed off in accordance with the provisions of the Chapter V of
the Finance Act, 1994. |
5: Can the input tax credit of Krishi Kalyan Cess be carried forward?
| No,It is not permitted in terms of section 140(1) of the CGST Act, 2017 read with Rule 117(1) of the CGST Rules, 2017. |
6: "In the case of group insurance policies, a Master Policy is issued; the beneficiaries of the Master Policy may be located in more than one State. In such cases, what will be the place of supply of services? "
| In the
case of issuance of Master / Group Policy to a registered person where the
premium charged is a single premium and not segregated based on the
beneficiaries of the insurance policies, the place of supply for such policy
will be the location of the registered person paying the premium. |
7: What is the time of supply of services for deposits and advances in cases of the recipient issuing a bank guarantee or making a deposit before assumption of risk and issuance of a policy?
| As per
the proviso to Section 2(31) of the CGST Act, 2017, a deposit given in
respect of the supply of goods or services or both shall not be considered as
payment made for such supply unless the supplier applies such deposit as
consideration for the said supply. In case of advances, however, the time of
supply is the time of receipt of advance as provided in section 13(2)(a) of
the CGST Act, 2017. |
8: "Whether ITC will be allowed on motor garage services used by insurance company for claim settlement? "
| Yes,
ITC will be allowed on services of motor garage used by an insurance company
for claim settlement. |
9: Whether the service provided by the re-insurance company to an insurer will be treated as a supply?
| The
service of re-insurance falls within the scope of supply, and is chargeable
to GST. |