Accepting one of the demands of the insurance industry, Revenue Secretary Sanjay Malhotra clarified that ‘no claim bonus’ offered by the insurance companies to an insured is an admissible deduction for valuation of insurance service and does not attract GST
New Delhi:
The GST Council on Saturday agreed to decriminalise certain offences and doubled the threshold for launching prosecution to Rs 2 crore, Revenue Secretary Sanjay Malhotra said.
Accepting one of the demands of the insurance industry, Malhotra clarified that ‘no claim bonus’ offered by the insurance companies to an insured is an admissible deduction for valuation of insurance service and does not attract GST.
However, the council which was expected to consider lowering the rate on health insurance to 12% from 18%, has not done it in this meeting.
The Council could decide on only 8 out of the 15 agenda items due to paucity of time, Finance Minister Nirmala Sitharaman said, adding the items not considered included one pertaining to setting up of appellate tribunals for GST.
As per this, GST compensation cess of 22% will be applicable to motor vehicles fulfilling all four conditions– namely, it is popularly known as SUV, has engine capacity exceeding 1500 cc, length exceeding 4000 mm and a ground clearance of 170 mm or above. The clarification is brought to ensure that the same practice is followed in all the states.
The issue of mechanism to curb tax evasion in pan masala and gutkha businesses could also not be taken up.
Malhotra said GST on online gaming and casinos was not discussed as the report of a Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, on the issue submitted its report only a couple of days back.
The report of the GoM was not even circulated to GST Council members, he added.
He further said the Council agreed to raise the threshold of launching prosecution to Rs 2 crore from the present Rs 1 crore.
Also, the GST on husk of pulses was reduced to nil from 5 per cent.