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Group medical policy

06 March 2024

A company taken policy of group medical insurance and Accidental insurance to his staff members.

Can gst input avail on such service

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16 Replies

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 06 March 2024

Life Insurance and Health Insurance:
- ITC on life and health insurance is generally blocked.
- Exceptions include cases where it’s mandatory for employers to provide such insurance to employees.
Group Health Insurance for Employees:
- ITC on health insurance for employees is not available under GST.
- However, if mandated by labor laws, it can be claimed

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 06 March 2024

@ Mr Rajkumar Gutti,

Yes, You can claim ITC for the accidental insurance which taken for Employees...

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 06 March 2024

ITC is eligible for expenses related to general insurance, such as fire, burglary, marine, stock, and transit insurance.

Input tax credit on insurance expenses under GST (caclubindia.com)

I thought it was employee bike accident insurance & Group insurance is ESIC which is not allowed

@ Raja PM is a tax consultant, you can contact him for further clarity on Section 17(5) of IT act

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 06 March 2024

Originally posted by : RAJA P M
	@ Mr Rajkumar Gutti,Yes, You can claim ITC for the accidental insurance which taken for Employees...

@ Mr Rajkumar Gutti,

Yes, You can claim ITC for the accidental insurance and Medical insurance which taken for Employees...

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 06 March 2024

Originally posted by : Yasaswi Gomes new
	ITC is eligible for expenses related to general insurance, such as fire, burglary, marine, stock, and transit insurance. Input tax credit on insurance expenses under GST (caclubindia.com) I thought it was employee bike accident insurance & Group insurance is ESIC which is not allowed @ Raja PM is a tax consultant, you can contact him for further clarity on Section 17(5) of IT act

🙏🙏🙏🙏🙏🙏🙏

I'm not AI...

JUST A HUMAN BEING...

So, I'm not helpful to You as AI or ChatGP.

So and So better to take answers from that machines...

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 06 March 2024

For Your Reference,

This is the detailed explanation...

https://www.caclubindia.com/forum/gst-itc-on-health-insurance-469817.asp

For Your Reference...

1 Like

Rajkumar Gutti (480 Points)
Replied 06 March 2024

Is health / medical , Accidental insurance for company staff is mandatory by any central Govt.law or any Maharashtra Govt. state law

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 06 March 2024

The section that addresses the ineligibility of Input Tax Credit (ITC) for goods or services used for personal purposes is Section 17 (5) (g) of the CGST Act. This section explicitly restricts the eligibility of ITC on items consumed personally. And section 15.5.aa can reject ITC. So, it’s essential for businesses to maintain accurate records and ensure compliance with the law regarding ITC claims.

Applicability to ESIC:
- ESIC contributions are not directly related to ITC. They serve different purposes:
  - ESIC contributions fund healthcare services for employees and their families.
  - ITC allows businesses to offset the taxes paid on inputs against their output tax liability.

All over India, the same laws applicable. General insurance (Accident insurance) can be claimed). In Maharashtra it is mandatory labor law soon and not already yet. When it is approved, you can claim ITC

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 06 March 2024

What is this reply...??

Don't post unrelated inputs to query. It's confusing by querist and all others who is referring the details...

If You can read the law and understand then go to refer. After give solution. Without knowing don't put msg taken from anywhere...

Please please avoid...

Already we we can't forward our inputs in every query. Bcoz, one of a member act like a ....

1 Like

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 07 March 2024

It says ITC is not available as per that act for personal use and ITAT can reject that. That means people have been writing wrong suggestions here and covering it up lol . Even business entity concept suggests the same.

RAJA P M ("Do the Right Thing...!!!") (127227 Points)
Replied 07 March 2024

---> Read Your replies, it's not income tax...

--> Read the GST law if You can understand the law and provisions

--> Otherwise it's can't favorable to You. Bcoz, It's not only through online copy paste works...

-->> Good Luck...

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 07 March 2024

Ok you win doesn't mean I can't learn taxation here. You saw how good I'm at tds anyways, that insurance not claimable is for transport vehicle only. What is the nature of the client business? I don't know everyone ask half k owledge questions without even telling any details

Yasaswi Gomes new (Finance ) (4486 Points)
Replied 07 March 2024

Inputs partly for business purpose and partly for exempted supplies or for personal use – This is for businesses which use inputs for both business and non-business (personal) purpose. ITC used in the portion of input goods/services used for the personal purpose must be reversed proportionately.

I think hold my grounds

https://cleartax.in/s/gst-input-tax-credit