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 company 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 A
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nt, Example: Insurance under Workman Compensation Act, Company can claim ITC.
Trust above clears the 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 is 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.
Rega
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