You can generally claim Input Tax Credit (ITC) on staff health insurance under GST. While Section 17(5)(b) mentions restrictions for life and health insurance, there are exceptions. You may still be able to claim ITC if you resell these services, offer them as part of a composite sale, or if providing them is a legal requirement for your business.
08 April 2023
Check for the exemption applicability....
You can still claim ITC on food expenses, health service costs, renting of conveyances and insurance if-
You are reselling the same goods or services You are reselling these together with other goods or services as a composite or mixed sale It’s mandatory for the employer to provide the above services or goods to its employees to comply with any law.