Dear Experts,
One of the company takes the group insurance for their employees. for the payment of premium, company deducting some portion of salary from the employees to pay the insurance premium and Insurance company will provide bill on the company name, not one the employee names. Here company collecting the premium and paying to the insurance company. Can ITC be claim on the insurance by the company as bill received on company name? What are the provisions applicable on this issue ?
Company Can't Claim ITC on Employee Insurance Premiums Unless Mandated by Law or Business-Related, Experts Conclude. A company inquired about the eligibility of claiming Input Tax Credit (ITC) on group insurance premiums paid for employees under the Goods and Services Tax (GST) framework. The insurance premium is deducted from employee salaries, and the bill is issued in the company's name. Experts in the forum clarified that ITC is generally not available for life and health insurance unless mandated by the government or if the insurance is part of a composite supply related to business activities. The consensus was that ITC is not claimable unless the insurance fulfills a government obligation or is directly related to business operations. (AI Summary)
TaxTMI 
TaxTMI 
