GST Input on Medical Insurance Expense (Employess.)

[Asked by 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 denial for employee health insurance persists absent government notification permitting ITC, despite employer recovery from employees.
ITC on GST charged for employer procured employee health insurance is generally disallowed, with exceptions only where the government notifies the service as an employer obligation or where the inward supply is used to make an outward taxable supply of the same category; mere recovery of the premium from employees does not permit ITC, and an advance ruling or departmental clarification is advisable to determine if the Workmen Compensation obligation has been so notified.