GST Input on Medical Insurance Expense (Employess.)

[Guest]

Dear Expert(s),

A Group Insurance taken by the Company of all their workers AND ALSO RECOVERED THE COST OF SUCH EXPENSE FROM THEIR WORKERS.

The bill is in the name of the company, so whether the GST Input allowed to the company as it is written in the LAW:

No Input shall be allowed for rent-a-cab, health insurance and life insurance except the following:

1. Government makes it obligatory for employers to provide it to its employees (Workmen Compensation Act.)

AI Summary

Input Tax Credit on Employee Medical Insurance Only Allowed If Government-Mandated or Through Specific Notification. Seek Advance Ruling. A company inquired about the eligibility of claiming GST input tax credit on group medical insurance for employees, where the cost is recovered from employees' wages. The law generally disallows input tax credit for health insurance unless it is mandated by the government or used for making an outward taxable supply. Experts advised that input tax credit is only permissible if the insurance is government-mandated, as per the Workmen's Compensation Act, or if a specific government notification allows it. It was suggested to seek clarification through an Advance Ruling for a definitive answer.