GST Tip – 215

As per the Determination of Value of Supply, in the case of insurance premiums, the value of supply for determining GST will be 25% of the premium charged for the first year and 12.5% from the subsequent years only if the policyholder is aware of the amount to be allocated for investment or other than single premiums.

GST Tip – 213

As per the Draft Determination of Value of Supply, there are specific provisions for the insurance premiums. The value for determining the supply is the premium amount paid by the policyholder reduced by the amount allocated for investment if the investment amount is made available to the policyholder before only.