I have a few doubts and need suggestions, it pertains to the employee benefits:
We provide the comprehensive health insurance to the employee, and under that plan if they enrol their dependents the overall premium becomes less, however we only pay the premium of the employees on the company account and recover the premium paid for their dependents on monthly basis (we pay full premium in one go for both employee + dependents).
I understand, if we recover it, we are liable to charge GST, so I am not sure, if we are charging and depositing GST on the same. If yes, then okay, if no, then what would be the implications, and how to solve it?
One possible solution: I came across one situation, where if a company disburse interest free loan to the employee then it is not labile to charge GST, hence can we not consider the amount paid by the company on insurance for the dependents as an interest free loan (we know the amount, which can be treated as loan paid to the employees without interest) and then deduct the Equal instalment over 12 months?
Also, I have a few doubts, which I understand that you may have already taken care of.
- Hope we are not taking any input for the supplies which are purchased for the canteen
- Is the insurance premium paid by the company is eligible for the input GST?
CAclubindia
