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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Reversal of input tax credit: premium portion excluded from taxable value is not treated as exempt, so no reversal required. Clarification: the portion of life insurance premium excluded from taxable value under the valuation methodology for life insurance is not a separately exempt or non taxable supply; therefore, reversal provisions applicable where inputs are used for exempt supplies do not require reversal of input tax credit in respect of that excluded premium component.
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.
Reversal of input tax credit: premium portion excluded from taxable value is not treated as exempt, so no reversal required.
Clarification: the portion of life insurance premium excluded from taxable value under the valuation methodology for life insurance is not a separately exempt or non taxable supply; therefore, reversal provisions applicable where inputs are used for exempt supplies do not require reversal of input tax credit in respect of that excluded premium component.
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