ITC on key man insurance policy, Goods and Services Tax - GST

[Nisha Prabhu]

Whether input tax credit is allowed on key man insurance policy taken of officers and directors

Posts / Replies

[KASTURI SETHI]

Go through proviso to Section 17(5)(b) of CGST Act which is as follows:-

Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.]

Thus if key man insurance policy taken for officers and directors is obligatory on the part of Employer-Company, ITC can be taken, otherwise not.

[Bharat Sharma]

Please guide us on the GST credit availability on Directors & Officers Commercial liability insurance as well.