TMI BlogITC on medical insurance allowable under GST ?X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear professionals, My query is as per the order issued by Ministry of Home Affairs(MHA) MHA has issued Order No. 40-3/2020-DM-I (A) dated 15th April, 2020. In Clause No. 5 of Annexure II of the order MHA has made medical insurance mandatory for workers. Further MHA has issued clarification via ref: IRDAI/HLT/CIR/MISC/093/04/2020 dated 16th April, 2020. In the said reference the Government has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stipulated all industrial and commercial establishments, work places, offices etc. shall made arrangements for implementation of Standard Operating Procedure (SOP) before starting their functioning. Now, as per Section 17 (5) (a) of CGST Act, 2017 clearly states that the taxpayer is eligible to avail input tax credit if Government has made any service obligatory for an employer. Can we clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m ITC on medical insurance paid as per aforementioned order. Thanks Regards J S Uppal - Reply By Rajagopalan Ranganathan - The Reply = Sir, According to second proviso to Section 17 (5) (b) of CGST Act, 2017 as amended by CGST (Amendment) Act, 2018 Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an employer to provide the same to its employees under any law for the time being in force. MHA order cannot be treated as an Act enacted by Parliament. However if the order is issued in exercise of power conferred on the Government by an Act of Parliament then you are eligible to take IT of gst paid on insurance service. Please check whether the order is issued under the provisions of any act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Parliament. - Reply By KASTURI SETHI - The Reply = Proviso to Section 17 (5) says, 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.] Emphasis is on the phrases any law for the time being in force . MH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A has issued the above orders under Disaster Management Act and these orders are mandatory for all the employers/registered persons/manufacturers. Health crisis i.e.emergency like situation in the whole India. In my view , ITC cannot be denied. - Reply By Jasbir Uppal - The Reply = Dear Kasturi Sethi Thank you for your valuable response. As per order issued by MHA is binding up until ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and unless a notification is issued or any new change is done in the relevant Act. Thanks Regards J S Uppal - Reply By KASTURI SETHI - The Reply = Dear Sh.Jasbir Singh Uppal Ji, In my view, no separate notification is required. However, to be on safer side and for your satisfaction, you may seek clarification from the jurisdictional Commissioner. - Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply By Jasbir Uppal - The Reply = Dear Sh.Kasturi Sethi Ji Sh.Rajagopalan Ranganathan Ji Thank you for your valuable feedback. Thanks Regards J S Uppal - Reply By Surendra Gupta - The Reply = Dear Sir, The said MHA order has used word 'Worker' for which medical insurance is mandatory. Is worker word would include employees (in any capacity e.g. top management) working in all o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice. - Reply By KASTURI SETHI - The Reply = Sir, Here, 'workers' stand for manual labourers. Hence no question of being included in the 'Top Management'. - Reply By KASTURI SETHI - The Reply = 'Worker' is also an employee but of Cadre-IV. - ITC on medical insurance allowable under GST ? - Query Started By: - Jasbir Uppal Dated:- 30-4-2020 Goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Services Tax - GST - Got 8 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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