Goods & Services Tax (GST)

Yes, the premium receipt will separately show the GST component.

India will have dual GST.

India being a federal nation, both the Centre and States would simultaneously levy GST on a common tax base.

No. only one GST would be levied.

On intra-State supply of goods or services a Central GST (CGST) plus a State GST (SGST) would be levied proportionately. In case of Union territories Central GST (CGST) plus a Union Territory GST (UTGST) would be levied proportionately.

For inter-state supply of goods and services and Integrated GST (IGST) will be levied by the Central Government

Intra-state means where buyer/service provider and seller/service recipient are located within a same State.

Inter-state means where either buyer/ service provider or seller/ service recipient are located in different States.

The liability to pay tax on goods or services arises at the time of supply.

The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made.

Date of issue of invoice by the supplier or last date on which he is required to issue the invoice with respect to the supply or date on which the supplier receives the payment with respect to the supply of services

Under GST, advances received would also be liable to tax.

Location of the supplier will be the state in which the insurance company office/branch is located.

For e.g.: Future Generali has branches across states in India. Generally depending on the location of the customer, Future Generali would render services from its nearest local branch office in that particular state

For insurance services, if the services are provided to a registered customer (B2B) the place of supply shall be the registered location of service recipient.

If the services are provided to an unregistered customer (B2C), place of supply shall be the location of recipient on the records of supplier.

No. Pure indemnities are not liable to GST.

GST registration is known as GSTTIN. It is a 15 digit unique ID provided to a person registered under GST law.

Yes.

Yes. A person having multiple business verticals in a State has an option to obtain a separate registration for each business vertical.

Registration under GST would confer the following advantages to business:

• • Legally recognized as supplier of goods or services;
• • Proper accounting of taxes paid;
• • Authorized to collect tax and pass on the credit of tax paid to the recipients;
• • Eligible for claiming input tax credit.

A person who is engaged exclusively in the business of supplying goods are services which are not liable to tax or wholly exempt from tax are not liable to register under GST.

Every supplier from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds INR 20 Lakhs (INR 10 Lakhs is special category States) is liable to register under GST.

Respective categories require mandatory registration under GST irrespective of the threshold limit:

• • Inter-state taxable supply;
• • Casual taxable person;
• • Person required to pay tax under reverse charge;
• • E-commerce operators;
• • Non-resident taxable person; Persons who are required to deduct TDS

In case supplier of goods or services is an unregistered person, tax will have to be paid on reverse charge basis by recipient of service if he is a taxable person. Meaning, we will have to raise an Invoice on ourselves for the amount of GST which the Supplier would have charged if he was registered.

Reverse charge basis means, the liability to pay tax in relation to the supply of goods or services is on the buyer/ recipient.

No. Insurance services fall under forward charge i.e. the insurer company would collect GST from customer and discharge GST liability.

Yes. Services provided by an insurance agent to a person carrying out insurance business would be liable to GST under reverse charge. Thus the insurance company is liable to pay tax on the same.

Yes, Future Generali will be required to display its certificate of registration in a prominent location at his principal place of business and at every additional place or places of business. Also, it will need to display its GSTIN on the name board exhibited at the entry of his principal place of business and at every additional place or places of business

• a) Possession of tax invoice / debit note issued by a registered supplier,
• b) Goods / services have been received,
• c) Tax charged has been paid to the credit of the Government,
• d) GST return has been furnished.

For e.g. Future Generali has availed services of a registered agent for sale of its insurance policies. In order to claim the credit of the tax paid for the services availed by Future Generali the agent needs to issue an appropriate invoice (as per the prescribed format within the stipulated time) to Future Generali. Further the agent has paid the tax charged as reflected on the invoice to the Government and has reflected the same in his outward supply return (GSTR-1).

Yes. The definition of input tax includes the tax payable under the reverse charge.

Yes, it includes taxes paid on input goods, input services and capital goods. Credit of tax paid on capital goods is permitted to be availed in one installment.

The old rate of 15% shall be applicable as services are provided prior to 1.7.2017.

GST will be applicable on financial endorsements i.e. where any amount or charges are collected. However, there will be no GST on non-financial endorsements.

In Each state one Branch has been identified as Principal State of Business and other Branches are identified as Additional Place of Business. Future Generali India Life would have one GSTIN Number per state which will be applicable for all the branches in that state.

No. Such policies will be tagged to Future Generali HO

For B2B customers one would need to obtain the GSTIN, state name and state code.

For B2C customers one would need to obtain the communication address along with the PIN code/State code of the customer.

Yes, however it will not have any impact on the premium already paid. Any future premium will be liable to GST on the basis of the revised location.

Any advance premium received for an insurance policy will be liable to GST.

Yes. We need to share with vendors and other service providers who are registered under GST.

Yes. Future Generali will need the GST registration numbers of all vendors and customers who are registered.

Since Future Generali is an insurance service provider, the relevant codes pertaining to insurance services are attached herewith.

The vendor will have to raise the invoice depending upon which Future Generali branch procures or avails goods / services.

No, all the purchase orders and invoices pertaining to service tax should be booked and cleared before 1 July 2017.

Scenario 1: Where invoice has been issued and payment is also received after change in rate of tax, time of supply shall be date of receipt of payment or date of issue of invoice, whichever earlier.

Scenario 2: Where invoice has been issued prior to change in rate of tax but payment is received after the change in rate of tax, time of supply shall be date of issue of invoice.

Scenario 3: Where payment is received before change in rate of tax, but invoice for the same has been issued after change in rate of tax, time of supply shall be date of receipt of payment.

A tax invoice is a document to be issued by a registered person for supply of taxable goods / services. I

t has to be issued showing the description and other information prescribed under GST law

The liability to discharge tax under reverse charge basis remains always with the recipient. In case a supplier is a registered supplier, he would be required to issue a Zero-GST on the recipient.

In case a supplier is an unregistered supplier, in that case the recipient will have to raise an invoice on itself.

For transaction value less than INR 200, no tax invoice or bill of supply are required to be issued.