AInput Tax Credit Availability

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This discussion clarifies whether a private limited company can claim Input Tax Credit (ITC) on GST paid for employee health insurance premiums. Initially, ITC was blocked but became available from April 15, 2020, for services employers are obligated to provide due to COVID-19, including health insurance. It's confirmed that ITC is available for new policies taken in October 2021, provided the health insurance is made mandatory by law, not just recommended.

Neha

Neha (Querist)
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25 October 2021 Respected Expert,
Please provide Guidance
Can a Private Limited Company avail Input Tax Credit of GST for Employees Health Insurance Premium Paid by it during FY 2021-22.

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 October 2021 Yes, ITC can be claimed.

Now ITC can be availed which was earlier blocked on Health-Insurance and hiring of motor vehicle for transportation of employees from 15th April 2020

Due to COVID-19 epidemic in the country, Government has made certain services obligatory for employer to provide to its employees.

Neha

Neha (Querist)
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25 October 2021 Sir Thank You For the Guidance. I just wanted to confirm whether availing ITC on Health-Insurance will be available on a new insurance which is being taken in October 2021 or was it only allowed for a particular period starting from 15th April 2020 and now the period is over.
Please clarify this also
Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 October 2021 Availing ITC on Health-Insurance will be available on a new insurance which is being taken in October 2021

CA Altamush Zafar

CA Altamush Zafar (Expert)
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26 October 2021 ITC on health insurance only applicable where the government has made it mandatory under any law. ITC will not be applicable even if such insurance is recommended by the government but not made mandatory under any law..

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