- Employers could claim ITC on group health and life insurance.
- ITC relief proposed for motor vehicles taken on lease.
- GST prosecution rules to be eased, limiting criminal action.
GST Council Meeting: Employers could soon be able to claim input tax credit (ITC) on group health and life insurance premiums as well as motor vehicles taken on lease, rent, or hire. According to NDTV, citing sources, the GST Council is expected to review these proposals at its upcoming meeting on October 7.
Currently, employers pay 18 per cent GST on group health and life insurance policies provided to their staff but cannot claim ITC on this tax in most cases.
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The proposal, if approved by the Council, would allow employers to claim ITC on group insurance premiums as well as extend ITC relief to motor vehicles taken on lease, rent, or hire.
Prosecution Rules To Be Eased
The Council may also consider easing prosecution rules based on recommendations from the GST Law Panel. The panel has proposed raising the tax-evasion threshold required for prosecution, shortening proposed jail terms for GST offences, and limiting criminal action strictly to serious violations, NDTV sources said.
If adopted, these measures are expected to significantly reduce criminal proceedings in GST cases and streamline dispute resolution for taxpayers.
Council To Focus On Process Reforms
No major GST rate changes are expected at the meeting, as the panel plans to focus instead on "process reforms" and the implementation of recently undertaken rate rationalisations.
According to Finance Ministry sources, cited by NDTV, the Council will review how previous GST rate adjustments have been implemented over the past year rather than introducing new rate cuts. The main objective of the session will be ironing out existing implementation friction points and assessing the overall impact of recent policy changes.