Time of supply of life insurance services under GST : CBIC Clarify

What would be the time of supply of life insurance services?

Insurance policies are contracts for indemnifying any loss suffered by the  policyholder. The policyholder is required to pay a premium at the time of inception of the policy. Renewal premiums are required to be paid on periodical basis during the tenure of the policy. For renewal of the policies the policyholders are allowed grace period ranging from 15 days to 30 days in accordance with the IRDA (Protection of Policyholders’ Interests) Regulation, 2002.
The time of supply of life insurance services to the policy holders would be as
under:-
(a) New Policy – At the time of issuance of the policy;
(b) Renewal of Policy – The time of issuance of renewal notice for insurance  premium;
(c) Other charges including ULIP charges – At the time of levy or recovery of  the charges from the policyholder.

 

Q 70 of GST FAQs on Financial Services Sector published by CBIC

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