Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value.

Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value. https://www.taxtmi.com/circulars?id=69307 The circular clarifies that the portion of life insurance premium excluded from taxable value under the life-insurance valuation rule does not constitute an exempt or non-taxable supply; it results from valuation methodology only. Consequently, that excluded premium portion does not trigger reversal of input tax credit under the GST reversal provisions and related rules applicable when supplies are for exempt or non-taxable purposes. en-us Fri, 05 Jul 2024 00:00:00 +0530 Mon, 09 Mar 2026 16:14:29 +0530 TaxTMI RSS Generator Clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies which is not included in taxable value. https://www.taxtmi.com/circulars?id=69307 The circular clarifies that the portion of life insurance premium excluded from taxable value under the life-insurance valuation rule does not constitute an exempt or non-taxable supply; it results from valuation methodology only. Consequently, that excluded premium portion does not trigger reversal of input tax credit under the GST reversal provisions and related rules applicable when supplies are for exempt or non-taxable purposes. Circulars GST - States Fri, 05 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/circulars?id=69307