ITC in Health insurance

ITC is not available

@ Mr Savita Deshpande.,

Yes... You can avail Credit for the insurance which paid for employees by company.

• The guidelines issued by the Ministry of Home Affairs (MHA) Government of India vide order no. 40-3/2020-DM-I(A) dated 15.04.2020 under Sec. amongst other things specifies that all industrial and commercial establishments, work places, offices, etc. shall be required to obtain medical insurance for the workers mandatorily before starting their operations after the lockdown.
• Medical insurance would be part of the health insurance and hence ITC would be permitted only if obtaining such medical insurance is mandatory. • However, as per MHA order dated 17.5.2020 all earlier MHA orders ceases to have effect from 18.05.2020 and there is no guideline for mandatory health insurance of workers from 18.05.2020
• Hence, the medical insurance was obligatory only from 15.4.2020 to 17.5.2020. So, ITC is only available on Premium paid for policy taken between 15.4.2020 to 17.5.2020, otherwise ITC is blocked u/s 17(5).

Thank you to all

Originally posted by : Sagar
	• The guidelines issued by the Ministry of Home Affairs (MHA) Government of India vide order no. 40-3/2020-DM-I(A) dated 15.04.2020 under Sec. amongst other things specifies that all industrial and commercial establishments, work places, offices, etc. shall be required to obtain medical insurance for the workers mandatorily before starting their operations after the lockdown.• Medical insurance would be part of the health insurance and hence ITC would be permitted only if obtaining such medical insurance is mandatory. • However, as per MHA order dated 17.5.2020 all earlier MHA orders ceases to have effect from 18.05.2020 and there is no guideline for mandatory health insurance of workers from 18.05.2020 • Hence, the medical insurance was obligatory only from 15.4.2020 to 17.5.2020. So, ITC is only available on Premium paid for policy taken between 15.4.2020 to 17.5.2020, otherwise ITC is blocked u/s 17(5).

 

It's not blocked u/s 17(5)....

 

@ Raja P M .,
Pls refer Sec 17(5) of CGST act.

Relevant extract of the section is as under:

(b) the following supply of goods or services or both—

i. food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:

@ Mr Sagar.,

(aa).....
applicable to self ...

Not for employees as company expenses...


Note : Better to write prefix Mr / Ms / Mrs any naming word if You'll write...

Yes, there is exception for health insurance if service notified by Govt. is mandatory for an employer under any Law
then employer can take ITC.