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GST ITC for Staffs Insurance & Company's Car

Mohanraj J (1162 Points)

21 July 2020

Dear Friends,

Can we take ITC against Staffs Insurance Policies and Company's Motor Car is using by GM?.

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11 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 21 July 2020

You can not take ITC on moter car as per section 17(5) it's blocked credit
pls elobrate about your policy, is it group insurance policy or any specific policy?

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Mohanraj J (1162 Points)
Replied 21 July 2020

Staffs Insurance - It is not a Group Insurance. Company paid and received each invoice for each one staffs

RAJA P M ("Do the Right Thing...!!!") (127129 Points)
Replied 21 July 2020

I agreed to Mr Sagar's view...

@ Mr Mohanraj J,

You can't claim ITC for the insurance of the Motor Car for using GM...

As per my view.,
For the insurance paid by company to employees then Company can be avail ITC for the insurance...

1 Like

Mohanraj J (1162 Points)
Replied 21 July 2020

Dear Mr Raja, Thank u so much for your kind assistance. Let me know the last date of GSTR 3B Filing for June 2020?

RAJA P M ("Do the Right Thing...!!!") (127129 Points)
Replied 21 July 2020

The due dates based on turn over...

Jun-2020 GSTR 3B :

Category A states : 23rd September 2020...
Category B States : 25th September 2020...

1 Like

annu Goyal (1102 Points)
Replied 21 July 2020

You cannot take ITC on motor vehicle as well as on staff insurance as it's block under sec 17(5)

On insurance ITC only available if it is mandatory by Govt.

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Shivam RC (Student) (23683 Points)
Replied 21 July 2020

As per the Provision of Section 17(5) clause (a) of the CGST Act 2017, Input Tax Credit ( ITC ) on Motor Vehicles is specifically BLOCKED.

As far as the ITC on Staff Insurance is concerned, you can claim it only if it is obligatory for an employer to provide its employees under any Law for the time being in force. In General, Life Insurance or Health Insurance is Blocked by virtue of clause (b) of sub section (5) of Section 17 unless it is obligatory.

2 Like

Vijayprakash P (1313 Points)
Replied 21 July 2020

You cannot avail ITC on motor vehicle as per section 17(5). In the case of insurance ITC available to the company.

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Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 22 July 2020

ITC on MV : Block u/s 17(5)
ITC on Staff Insurance : Block U/s (5) , but if it is obligatory by law , then ITC can be claimed.

Note :
As due Covid-19 pendamic , manufacturer are being ask to take mandatory the Insurance policy for there staff by government, in such cases the ITC is available.

1 Like