GST allowed on Employee Insurance

Nivesh tater (Tax Executive at Mazars India Bangalore)   (205 Points)

14 June 2020  
The Vampire section in GST, yes section 17(5), which restricts ITC, in a way vampire sucks blood!

Wherein, it restricts ITC on rent-a cab, life insurance and health insurance EXCEPT when;

Govt notifies the service which are obligatory for employer to provide to its employees under ANY LAW for the time being in force.

It is to be noted that under the Disaster Management Act, 2005, the Government vide it's order no 40-3/2020-DM-I(A) dated 15th April, 2020, under Annexure II mandated the employer to provide special transportation facility and Medical insurance to its employees MANDATORILY.

Under this situation the ITC could be availed. In order to ensure, do submit written representation to the Jurisdictional officer to avoid any confusion.

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