Background
Goods and Service Tax (GST) is a destination based tax on consumption of goods and services. It consists of Central GST ("CGST") and State GST ("SGST") for intra state supply & Integrated GST ("IGST") in respect of interstate supply. State wise registration is required for all places of business in the State. Central GST & Integrated GST rate would be uniform across the States whereas State GST rate may vary to the extent of 2%. Invoice with unique consecutive serial number, name, address, GSTIN of insured needs to be issued towards collection of premium. Except IGST, CGST & SGST liability can only be adjusted against CGST, IGST & SGST, IGST respectively.
Implication
GST registration in each State of operation would also require following to ensure compliance:
- State wise GSTIN of the insured other than non -business customers would be required to be captured in policy booking system;
- The GSTIN of the insured, State of branch issuing policy along with other basic details needs to be mandatorily reflected in the policy copy;
- Monthly returns capturing GSTIN of the insured other than non-business customers along with Premium & GST amount would be required to be uploaded on GSTIN website
- Input Tax Credit would be available to the insured of GST paid on premium to the extent reflecting against their GSTIN.