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GST On Employees Health insurance

Manoj Kumar (Accountant) (108 Points)

17 July 2018

IS ITC Available on employees medical insurance. pls help

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3 Replies

Suvendu Chakraborty (Accounts Executive) (259 Points)
Replied 17 July 2018

no ITC for health insurance on employee

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 17 July 2018

As per section 17(5) ITC on Health insurance is Block , except when Government notifies the services which are obligatory for an employer to provide to it employees
under any law for the time being in
force

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Vinod Babu (24191 Points)
Replied 18 July 2018

Under GST, ITC credit of GST paid is not available on rent-a-cab, health insurance and life insurance except the following:

Government makes it obligatory for employers to provide it to its employees

goods and/or services are taken to deliver the same category of services or as a part of a composite supply, credit will be available

So, if the insurance is taken because of obligation by the Government, Example: Insurance under Workman Compensation Act, Company can claim ITC.

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