Risk Free Ltd. is providing life insurance services to subscribers. It is the policy of the company not to intimate the amount allocated for investment to the subscribers at the time of taking policy. The company supplie

Computation of Value of Supply for Life Insurance Services: As per Rule 32(4) of the CGST Rules, 2017, where the supplier of services is an insurer engaged in the business of life insurance, the value of supply shall be: (a) For new policies: 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 amount is intimated to the policy holder at the time of collection of premium. If the amount allocated for investment is not intimated, then 25% of the gross premium charged from the policy holder for the first year premium and 12.5% of the gross premium charged from a policy holder for subsequent years' premium. (b) For single premium annuity policies: 10% of the single premium charged from the policy holder. (c) For policies where the entire premium is for risk cover: 100% of the premium. Particulars Amount (₹) Premium for New Policy (₹60,00,000 x 25%) 15,00,000 Premium from Renewed Policy (₹1,30,00,000 x 12.5%) 16,25,000 Premium from Annuity Policy (₹1,50,00,000 x 10%) 15,00,000 Premium from only Risk Cover Policy 60,00,000 Total Value of Supply 1,06,25,000