CBIC Issued Circular Clarifying Taxability of Supply of Salvage/Wreckage by General Insurance Companies
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- By Chetan Kulasri
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- Last Updated on 28 June, 2024
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Circular No.215/9/2024-GST dated June 26th, 2024
The CBIC has clarified that in cases where general insurance companies are deducting the value of salvage as deductibles from the claim amount, the salvage remains the property of insured and insurance companies are not liable to discharge GST liability on the same.
However, in cases, where the insurance claim is settled on full claim amount, without deduction of value of salvage/ wreckage, the insurance company will be obligated to discharge GST on supply of salvage to the salvage buyer.
Click Here To Read The Full Circular
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