can take input tax credit of GST on insurance premium ?

The question here regarding availment of credit on insurance premium paid on the care which admittedly is being used in the business. The question does not pertain to availment of credit of tax paid on car (motor vehicle) per se. The first condition for availing credit is that the supply of goods/services is used or intended to be used in the course or in furtherance of business. The supply of insurance service in respect of car, made to you, appears to be in furtherance of business  since the car as claimed by you is used for business purposes. Here the insurance of car is comparable with insurance of any other business item like machinery etc. used for production (business).

       However, section 17(5) imposes restrictions. The restrictions in section 17(5)(a) would be applicable when the question is regarding availment of credit of tax paid on purchase of car. In the present case, as mentioned above, the question does not pertain to availment of credit on tax paid on car. Therefore, in my view, the credit should be admissible.

"IN RELATION" HAS NOT BEEN DEFINED IN GST ACT. "IN RELATION" IS, IN COMMON PARLANCE , USED FOR "IN CONNECTION WITH" THAT IS WIDER TERM AND THEREFORE IT WILL NOT ONLY COVER MOTOR VEHICLE BUT OTHER SERVICES IN CONNECTION WITH MOTOR VEHICLE ALSO. THUS EVEN ITC ON CAR INSURANCE AS A SERVICE IN CONNECTION WITH CAR WILL ALSO BE DISALLOWED U/S 17(5). 

ON THE OTHER HAND, WHEN ANYTHING ("IN RELATION OF") IS NOT SPECIFICALLY DEFINED, ONE MAY TAKE BENIFIT IN HIS/HER FAVOUR AS A TAX PAYER AND ONE MAY TAKE ITC ON CAR INSURANCE.

AS A TAXPAYER I WOULD GO FOR AVAILING THE CREDIT

MOTOR VEHICLE & OTHER CONVEYENCES:

1. PURCHASE - ITC NOT ALLOWED

2. REPAIR/INSURANCE/PARKING - ITC ALLOWED

3. HIRE OF CAR(4 WHEELER) - ITC NOT ALLOWED AS COVERED IN "RENT A CAB"

4. LEASE OF CAR - ITC NOT ALLOWED (SUBTANCE OF FINANCE LEASE IS AS IF PURCHASE CASE)

5. FUEL/ TOLL TAX - N/A AS NOT SUBJECT TO TAX

If one have paid Fire insurance premium including 18% GST which covers the assets inclding factory building, office building, machineries and a Car, Is it alowed to take claim of the GST paid on premium as IPT?

And also what about the GST on the premium paid for Insurance of Loss of Profit?

ITC is not available for health insurance and life insurance. However, ITC on insurance for business assets is available.

CGST Act specifically states that no ITC shall be available for personal insurances like life insurance & health insurance since these expenditures are not for the furtherance of business. However, businesses may take ITC for Fire insurance taken for the assets of the business.

Now coming to ITC on motor insurance and repairs, there is no clarity on this matter as Sec 17(5) of CGST Act specifically excludes Motor vehicles. In the previous regime, these expenses were ineligible for availment of credit. However, due to lack of clarity, most assessees can taking up ITC on motor insurance and repairs as of now. Hope, department comes up with a circular or notification on this matter at the earliest.

Can i take input on premium paid on Directors and officers insurance policy.

What if Company is paying premium for their employees insurance? Can be ITC taken for this case.??