This article is a very beautiful in short which has been encapsulated by CA Sachin M Jain who is a chartered accountant in practice and can be reached at casachinmjain@gmail.com
This advance ruling insight deals with the ambiguity of Application of GST on LIC Maturity Account in the hands of Policy holder , Read below , or listen to audio.
➢ There was constant ambiguity among the taxpayer over applicability of GST on LIC maturity in the hands of Policy holder.
➢ Karnataka Advance Ruling Authority under GST has said that – LIC maturity will not attract GST as it is not a service.
➢ Insurance premium paid is taxable under GST as it is the consideration for the services provided by Insurance Companies. Therefore on maturity of the policy, there would not be any service involved between the policyholder and Insurance Companies.
➢ Therefore, the said maturity amount will not be added to Aggregate turnover for the purpose of registration under GST Act.
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