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Shop insurance

ABHI KUMAR (679 Points)

03 April 2021

can we claim shop insurance itc

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9 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 03 April 2021

I think you cannot claim such ITC

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ABHI KUMAR (679 Points)
Replied 03 April 2021

Hmm ltl bit confusion

CMA Poornima Madhava (CMA) (13112 Points)
Replied 03 April 2021

What kind of insurance for the shop?

ABHI KUMAR (679 Points)
Replied 03 April 2021

Shop insurance

Shivam RC (Student) (23683 Points)
Replied 03 April 2021

As per the Provision of Section 17(5) clause (b) sub-clause (i) of the CGST Act 2017, Input Tax Credit (ITC) on "HEALTH INSURANCE or LIFE INSURANCE" is specifically Blocked.

So as per my opinion, you can claim ITC on Shop Insurance ( Fire insurance, Special Perils Policy, Burglary Policy etc ) since this insurance is being used in the course of or furtherance of business.

Just ensure that all the four conditions as laid down under Section 16(2) of the CGST Act 2017 is satisfied before claiming the ITC.

Regards,
Shivam RC.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 04 April 2021

Yes ITC is available.
As its not cover by Section 17(5) & definitely cover in the course of business.

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 05 April 2021

you cannot claim such ITC. Corporate policyholders, who have taken general insurance, can enjoy input tax credit on the GST paid on their policies (it was available to them even under service tax). Life and health insurers will not have input tax credit as it is not available for life and health insurances (as they are for personal purposes).