WORKMEN COMPESATION INSURANCE POLICY
This query is : Resolved
D RAMACHANDRAIAH
(Querist)
16 January 2025
IF ANY NOTIFICATION ITC ON WORKMEN COMPESATION INSURANCE POLICY FOR MANUFACTURING INDUSTRY
PLEASE PROVIDE
PLEASE PROVIDE
Dhirajlal Rambhia
(Expert)
16 January 2025
All manufacturing units with more than 20 employees must obtain Workmen Compensation Insurance to ensure benefits for their workers, as mandated by the Employees’ State Insurance Act, 1948. Units with fewer than 20 employees are also advised to secure this insurance under the same legal framework.
Input Tax Credit (ITC) Eligibility
According to Section 17(5)(b) of the CGST Act, input tax credit on insurance premiums is generally restricted. However, ITC is permitted when it is mandatory for employers to provide such insurance under any law. This means that if a company is legally required to provide Workmen Compensation Insurance, it can claim ITC on the premiums paid.
Input Tax Credit (ITC) Eligibility
According to Section 17(5)(b) of the CGST Act, input tax credit on insurance premiums is generally restricted. However, ITC is permitted when it is mandatory for employers to provide such insurance under any law. This means that if a company is legally required to provide Workmen Compensation Insurance, it can claim ITC on the premiums paid.
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