LIC maturity proceeds sum will not attract GST – Karnataka AAR
Relevant Extrat of the Ruling:
The Applicant has recieved Maturity Proceeds from LIC. Income of Maturity Proceeds would be received on maturity of the insurance policies. As the income is recieved on closure of the insurance contract consequent on maturity of the said policies. Insurance Premium is the consideration for the services provided by the insurance companies. Thus insurance premium of policies is taxable under GST.
Therefore on completion of the said contract / maturity of the policy, there would not be any service involved between the policy holder and the insurance company. Therefore the amounts received on maturity of the insurance policies are not relevant to the aggregate turnover and hence are not required to be added to the aggregate turnover for registration under the provisions of GST Act.
Thus it can be interpreted that LIC maturity proceeds sum will not attract GST.
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