ITC eligibility for group insurance

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..... ITC eligibility for group insurance
Query (Issue) Started By: - RameshBabu Kari Dated:- 4-8-2017 Last Reply Date:- 11-8-2017 Goods and Services Tax - GST
Got 8 Replies
GST
Dear Experts, One of the company takes the group insurance for their employees. for the payment of premium, company deducting some portion of salary from the employees to pay the insurance premium and Insurance com .....

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..... pany will provide bill on the company name, not one the employee names. Here company collecting the premium and paying to the insurance company. Can ITC be claim on the insurance by the company as bill received on company name? What are the provisions applicable on this issue ? Reply By HimansuSekhar Sha: The Reply: As per sec 17(5) of the CGST Act (b) the following supply of goods or services .....

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..... or both- (iii) rent-a-cab, life insurance and health insurance The credit is not eligible Reply By KASTURI SETHI: The Reply: I support the views of Sh.Himansu Sha, an expert. Reply By HimansuSekhar Sha: The Reply: Thank you for your support sir Reply By Nandan Khambete: The Reply: Under GST, ITC credit of GST paid is not available on rent-a-cab, health insurance and life insurance except t .....

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..... he following: * Government makes it obligatory for employers to provide it to its employees * goods and/or services are taken to deliver the same category of services or as a part of a composite supply, credit will be available So, if the insurance is taken because of obligation by the Government, Example: Insurance under Workman Compensation Act, Company can claim ITC. Trust above clears th .....

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..... e doubt. Regards, CA Nandan Khambete Reply By RameshBabu Kari: The Reply: Thank you all Reply By HimansuSekhar Sha: The Reply: OK Sir Reply By KIRTIKUMAR PUROHIT: The Reply: if insurance is taken to fulfill Government obligation in this case ITC available on that policy other wise ITC Not available. Reply By Ramaswamy S: The Reply: Tax paid on any service used for personal consumption i .....

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..... s not eligible for ITC (Negative List). If the service is used in the course of furtherance of business then ITC is allowed. So it is important to determine whether the service is for furtherance of business or is it for personal consumption. Regards S.Ramaswamy
Discussion Forum - Knowledge Sharing .....

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