GST on Incentive amount to insurance agent, Goods and Services Tax - GST

[SHARAD ANADA]

GST Query

General Insurance Agent got *incentive* for his performance in form of out of country trip with family and deducted TDS under section 194R of IT Act 1961.

Total incentive amount is Rs 22 lakh for each and every Agent. Is GST applicable on incentive amount? If yes then GST on RCM basis and insurance company will pay GST or is GST payable on forward charge basis and GST is to be paid by insurance Agent.

Insurance company debited such amount as Conference exp. in their books of accounts.

Posts / Replies

[GUNASEKARAN K]

Description of Supply of Service	Supplier of Goods	Recipient of Service
Services supplied by an insurance agent to any person carrying on insurance business	An insurance agent	Any person carrying on insurance business, located in the taxable territory

GST Payable by Insurance Company under Reverse Charge

[KASTURI SETHI]

Showing as conference expenses in the books of accounts will not serve any purpose. Actually, it is incentive expenses. RCM is applicable by the Insurance Company.

[KASTURI SETHI]

Such 'camouflaging' will not be digested by the department.

[Ganeshan Kalyani]

I agree with the views of the experts.

[Padmanathan Kollengode]

I agree with experts, it is payable on RCM by insurance company.