ITC on key man insurance policy

[Nisha Prabhu]

Whether input tax credit is allowed on key man insurance policy taken of officers and directors

AI Summary

Eligibility of Input Tax Credit for Key Man Insurance Under GST: Section 17(5)(b) Clarifies Obligatory Insurance Coverage A query was raised regarding the eligibility of input tax credit (ITC) under the Goods and Services Tax (GST) for key man insurance policies taken for officers and directors. One response highlighted that ITC is permissible if the insurance is obligatory for the employer under existing laws, referencing Section 17(5)(b) of the CGST Act. Another participant sought guidance on ITC availability for Directors & Officers Commercial Liability insurance, indicating ongoing discussions about the broader applicability of ITC in similar contexts.