ITC on group medical insurance policy

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This discussion examines the eligibility of claiming Input Tax Credit (ITC) on group medical insurance provided by companies to their employees, especially when no fee is charged to the staff. Generally, ITC on health insurance is blocked under Section 17(5) of the CGST Act. However, exceptions exist if the insurance is part of a taxable supply or if providing it is a legal obligation for the employer.

Nikkk

Nikkk (Querist)

01 April 2020 Deal All,
Can we take in any case ITC on group medical insurance provided by the company for Employees? and not charged any fee from employee.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 April 2020 ITC not available on health insurance.

CA Anita Bhadra

CA Anita Bhadra (Expert)

01 April 2020 Not Available - Blocked credit under sec 17(5)

RAJA P M

RAJA P M (Expert)

01 April 2020 ITC can be taken for the health insurance which is provide by company to its employees... Note the health insurance related ITC not available to individual person as per sec 17(5) of CGST

CA Suresh Jain

CA Suresh Jain (Expert)

02 April 2020 As per Section 17(5)(b) the ITC on health insurance is not allowable even if it is group health (medical) insurance. There are following to exceptions to this where ITC could be availed :
1. If the input service is used for providing same category or as part of taxable composite or mixed supply, and
2. where provision of such service by an employer to employees is obligatory under any law for time being in force

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