EXAMPLE-87

B an insurance agent provides services to Kotak Mahindra & received commission of Rs. 2 lakh.

Determine who is liable to pay GST.

Answer

Services provided or agreed to be provided by an insurance agent to any person carrying on insurance business who provides services to any person carrying on insurance business is in the list of reverse charge approved by GST Council. Thus, Kotak Mahindra is liable to pay entire GST on charges paid i.e. Rs 2 lakh.