Gst on car insurance premium

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This discussion clarifies whether Input Tax Credit (ITC) can be claimed on car insurance premiums for businesses involved in iron and steel. The consensus is that ITC on car insurance is generally blocked under Section 17(5) of the GST Act. If ITC has been incorrectly claimed, it needs to be reversed, and interest may also be applicable.

ARUN GUPTA

ARUN GUPTA (Querist)
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11 September 2023 Can I take Itc on car insurance premium in my gst co which have iron and steel business.please clarify?

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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11 September 2023 ITC on car is blocked u/s 17(5) so no ITC can be taken on car insurance.

ARUN GUPTA

ARUN GUPTA (Querist)
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11 September 2023 I have taken Itc on car insurance premium

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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11 September 2023 It is covered under Blocked Credit and ITC is not eligible for Insurance paid on Car Premium

RAJA P M

RAJA P M (Expert)
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11 September 2023 Yes I agreed with above said replies. The Car insurance premium related Tax is blocked under sec 17(5). So, You want to reverse the ITC which is taken and interest is also applicable...

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