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TMI Blog2022 (2) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... or this service has an element of supply of textile - In view of the above the applicant cannot claim ITC of GST charged by the Medical/Health insurance company in respect of insurance done for employees, as provided under section 17(5)(b)(i) of the CGST Act, 2017. - RAJ/AAR/2021-22 /14 - - - Dated:- 8-9-2021 - J.P. MEENA AND M. S. KAVIA, MEMBER Present for the applicant : Keshav Maloo (CA). Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period of 30 days from the date of service of this order. At the outset, we would like to make it clear that the provisions of both the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above provision have been provided in Section 17(5) of the CGST Act. 2017 wherein inter alia Section 17(5)(b) provides for restriction of input tax credit on Health insurance services subject to certain conditions which reads as under: (5) Notwithstanding anything contained in sub-section (I) of section 16 and sub- section (1) of section 18. input lax credit shall not be available in respect of the following, namely:- (a) .............................................................. (aa).................................................... (ab).................................................... (b) the following supply of goods or services or both,- (i) food and beverages, outdoor catering, beauty treatment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt measures to prevent the spread of Covid-19 disease at the work place. Ministry' of Home Affairs (MHA) vide its Order No. 40-3/2020-DM-I (A) dated 15th April 2020 made it obligatory' for organizations to provide medical insurance cover to its employees. Further MHA has issued clarification via ref: IRDAVHLT/CIR/MISC/093/04/2020 dated 16th April 2020. In the said reference the Government has stipulated all industrial and commercial establishments, workplaces, offices, etc. shall make arrangements for the implementation of Standard Operating Procedure (SOP) before starting their functioning. As per Clause No. 5 of Annexure-II for the purpose of social distancing for offices, workplaces, factories, and establishments Government ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is available. Now, since, the Government has made medical insurance mandatory for the workers of offices, workplace, factories, and establishments, and Section 17 (5) (b) of CGST Act. 2017 clearly states that the taxpayer is eligible to avail input tax credit if Government has made any service obligatory for an employer. Applicant is of the view that input tax credit can be availed on the premium paid on medical insurance of employees as per proviso to Section 17(5)(b) of the CGST Act, 2017. B. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT Whether the applicant can claim input tax credit of GST charged by the Medical/ Health Insurance Company in respect of insurance done for employees? C. PERSONAL HEARING In the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the workers mandatory. 4. Though, the above said order of MHA was issued on 15th April 2020. i.e. a year back but the fact remains that with the second wave of Covid-19 and consequential widespread outburst of the pandemic all the SOPs mentioned in MHA Order dated 15.04.2020 has become much more relevant. Every government agency including Hon'ble Supreme Court is spreading this message for all such measures like social distancing, sanitizing, etc. Further, all states government are also declaring lockdown from time to time. This all shows that the SOP prescribed under MHA Order dated 15.04.2020 is still very relevant and it is merely a technical formality whether it is extended or not because in all respective State Government order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance: Provided that the input lax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person far making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply. 6. on perusal of the above section, we observed that the following two condition is required to avail ITC to medical/health insurance.- (i) outward taxable supply should be same category. (ii) Inward supply should be an element of a taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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