- The GST Council may consider allowing employers to claim input tax credit (ITC) on GST paid for group health and life insurance policies for employees.
- Currently, employers pay 18% GST on such group policies, but ITC is mostly blocked except in limited legal-required cases.
- The proposed change would mainly benefit group health insurance, which companies offer more commonly than group life insurance.
- Experts say lifting the ITC restriction could lower employer costs and make employee insurance benefits more tax-neutral.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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