Q. Can insurance companies deduct gst@10% from gross commission and how we can reclaim the same from them

Question

Insurance company deducting 10% gst from gross commission. Under which provision they can deduct. And if it is illegal then how to reclaim the same from them

Answer 1

If the insurance company is deducting 10% as GST from the gross commission, it's important to clarify whether this is a part of the GST compliance (i.e., they are charging GST on the commission at the applicable rate, which should generally be 18% unless specified otherwise) or if there's a misunderstanding/misapplication of the GST rate.

Incorrect Deduction: If the deduction is not in line with the GST laws (e.g., deducting at a rate different from the applicable GST rate without proper justification), it could be considered incorrect.

Regards, CA. Praveen Sharma

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