The Government of Tamil Nadu on January 04, 2023, issued a notification regarding Clarification on various issues pertaining to GST.
The following has been stated namely: -
• With respect to the taxability of the No Claim Bonus offered by Insurance companies it has been clarified that:
1. There is no supply provided by the insured to the insurance company in form of agreeing to the obligation to refrain from the act of lodging an insurance claim during the previous year(s) and No Claim Bonus cannot be considered as a consideration for any supply provided by the insured to the insurance company.
2. No Claim Bonus (NCB) is a permissible deduction under clause (a) of sub-section (3) of section 15 of the TNGST Act for the purpose of the calculation of the value of supply of the insurance services provided by the insurance company to the insured.
• With respect to the applicability of e-invoicing with respect to an entity, it has been clarified that: -
1. Certain entities/sectors have been exempted from the mandatory generation of e-invoices as per sub-rule (4) of rule 48 of Tamil Nadu Goods and Services Tax Rules, 2017. It is hereby clarified that the said exemption from the generation of e-invoices is for the entity as a whole and is not restricted by the nature of the supply being made by the said entity.
Please refer to the notification for further information
[Notification No. 4/2023 – TNGST]
