Latest Query & Reply

Is the Employer contribution of PF deposited in LIC Employees’ deposit Linked Insurance Scheme & Group Gratuity paid to LIC eligible for Input tax Credit under GST.

Reply

As per section 17(5)(b)(iii) input tax credit shall not be available in respect of life insurance and health insurance except where government notifies such services obligatory for an employer to provide its employee under any law.

Therefore, input tax credit is available only if employer is in obligation to contribute such amount of insurance otherwise not.