(CBIC Circular No. 186/18/2022-GST, dated 27.12.2022)
Subject: Clarification on various issue pertaining to GST-reg.
Representations have been received from the field formations seeking clarification on certain issues with respect to -
i. taxability of No Claim Bonus offered by Insurance companies;
ii. applicability of e-invoicing w.r.t an entity.
2. In order to clarify the issue and to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Haryana Goods and Services Tax Act, 2017 (hereinafter referred to as "HGST Act"), hereby clarifies the issues as under:
It is, therefore, clarified that No Claim Bonus (NCB) is a permissible deduction under clause (a) of sub-section (3) of section 15 of the HGST Act for the purpose of calculation of value of supply of the insurance services provided by the insurance company to the insured. Accordingly, where the deduction on account of No claim bonus is provided in the invoice issued by the insurer to the insured, GST shall be leviable on actual insurance premium amount, payable by the policy holders to the insurer, after deduction of No Claim Bonus mentioned on the invoice.
Illustration: A Banking Company providing banking services, may also be involved in making supply of some goods, including bullion. The said banking company is exempted from mandatory issuance of e-invoice in terms of Notification No. 17/GST-2 dated 31.03. 2020, as amended, for all supplies of goods and services and thus, will not be required to issue e-invoice with respect to any supply made by it.
3. Difficulty, if any in implementation of this Circular may please be brought to the notice of the Department.
ASHOK KUMAR MEENA
Excise and Taxation Commissioner-cum -
Commissioner of State Tax, Haryana