Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value
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Input tax credit reversal not required for premium portions excluded from taxable value under life insurance valuation rules. The portion of life insurance premium excluded from taxable value by the valuation methodology for life insurance is not to be treated as an exempt or non taxable supply; accordingly, no reversal of input tax credit is required under the GST rules applicable to reversal where inputs are attributable to exempt or non taxable supplies.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit reversal not required for premium portions excluded from taxable value under life insurance valuation rules.
The portion of life insurance premium excluded from taxable value by the valuation methodology for life insurance is not to be treated as an exempt or non taxable supply; accordingly, no reversal of input tax credit is required under the GST rules applicable to reversal where inputs are attributable to exempt or non taxable supplies.
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