Goods & Service Tax (GST) 10 October 2026
Employers Can Now Claim GST Credit on Insurance Premiums
Employers can now offset the 18% GST paid on group health and life insurance premiums by claiming an Input Tax Credit, as approved by the GST Council. This change reduces the cost of employee insurance and improves cash flow for businesses.
The GST Council has approved an Input Tax Credit (ITC) for the 18% GST levied on group health and life insurance policies purchased by employers. This move lets companies reclaim the tax paid on employee insurance premiums.
- Benefit: Reduces overall insurance expense for firms.
- Cash flow: Immediate tax relief improves liquidity.
- Eligibility: Applies to all group policies under the GST regime.
For full details, see the original article.
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