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Employee health insurance

23 February 2020

Hello all, i have a query my company take health insurance policy for all empoyee we paid to insurance company premium with gst, can we availed ITC on this payment,

Is answer is different if insurance is mandatory as per factory act 1948.

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9 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 23 February 2020

Yes ....... ITC on insurance in regard to your query is available only if it is obligatory for Employer under any Law. Else It's block.
(Refer Provisio in Section 17(5) of CGST Act)

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Nrusingh Beura (55 Points)
Replied 23 February 2020

But sir, there is no specific section in factroy act as health insurance to be mandatory for employee, although my comapny is cover under factory act.

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 23 February 2020

Can we availed ITC on this payment...?!

- Yes... You can claim ITC for the Insurance...

although my comapny is cover under factory act...

- Your query is based on GST and ITC. Right...?!
- For the said Insurance for employees is secured Your future problems any incidents. It's Your company's own decisions...
- Don't be confuse with GST Act & Factory Act.

SOHAN LAL (Manger Accounts & Finance) (363 Points)
Replied 23 February 2020

ITC disallowed in case of health insurance for employees

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 23 February 2020

But there is specific Section 17(5) of CGST Act , in GST that ITC is block for Health Insurance

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 23 February 2020

Please be check out the details again the health insurance u/s 17(5)... it's not for company take to employees...

SOHAN LAL (Manger Accounts & Finance) (363 Points)
Replied 23 February 2020

But health insurance taken for employees not mandatory in any law. It's depending on Company policy.

Nrusingh Beura (55 Points)
Replied 23 February 2020

Thank you all memebrs.

Anshuman Basu (account -GST) (1556 Points)
Replied 23 February 2020

Section 17(5) of CGST Act , in GST that ITC is block for Health Insurance but Any services which are made obligatory for an employer to provide its employee by the Indian Government under any current law in force