ITC eligibility for group insurance

[RameshBabu Kari]

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 ?

AI Summary

Input tax credit on group insurance premiums is disallowed unless a statutory employer obligation or composite supply permits it.
General rule excludes input tax credit on life and health insurance premiums; ITC may be available only where the insurance is procured to meet a statutory employer obligation or where the supply forms part of a composite supply or is used to deliver the same category of taxable services; services for personal consumption remain ineligible.