Group medical policy

Quick Summary
Discussion on GST ITC for group medical and accidental insurance for employees. Generally, ITC on health/medical insurance is blocked under Section 17(5) of CGST Act, except when mandatory by law. Accidental/general insurance may be eligible, leading to mixed interpretations.

Originally posted by : Yasaswi Gomes new
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

Sorry Ji...

I'm very tired for given my replies to you for understanding the law...

So, sorry to say I'm not interested...

Itc is eligible for such employees. Only in case of car insurance uts nit available

GST on group medical insurance policy (also called group health insurance or mediclaim) paid by an employer:

  1. GST RATE: 18% on the premium amount. Group health insurance does not get the 5% rate available to individual/family health insurance - it is taxed at the standard 18% rate.
  2. ITC ELIGIBILITY: The employer CAN claim input tax credit on the GST paid, provided:
  • The policy covers all employees (not selective)
  • The benefit is provided as part of statutory obligation or in the course of employment
  • The policy is NOT predominantly for a specific individual's benefit

    Section 17(5)(b) of the CGST Act restricts ITC on health insurance for non-employees, but employer group policies for staff are eligible under the employment-related exception.

  1. EMPLOYEE TAXATION: Premium paid by employer for group mediclaim is a perquisite. Under income tax, employer-paid health insurance for an employee (and their family) is exempt from tax in the hands of the employee.
  2. GST INVOICE: The insurance company will issue a tax invoice; employer files this in GSTR-2B and claims ITC in GSTR-3B.

For complete GST rates and ITC rules applicable to different insurance premium types: https://taxgarden.in/blog/gst-on-insurance-premiums-india-rates-exemption-2026

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