Section 32(4) in The Central Goods and Services Tax Rules, 2017
(4)The value of supply of services in relation to life insurance business shall be,-(a)the gross premium charged from a policy holder reduced by the amount allocated for investment, or savings on behalf of the policy holder, if such an amount is intimated to the policy holder at the time of supply of service;(b)in case of single premium annuity policies other than (a), ten percent of single premium charged from the policy holder; or(c)in all other cases, twenty five percent of the premium charged from the policy holder in the first year and twelve and a half percent of the premium charged from the policy holder in subsequent years:Provided that nothing contained in this sub-rule shall apply where the entire premium paid by the policy holder is only towards the risk cover in life insurance.
