GST Council suggests ITC on group health and life insurance
Business
The GST Council just suggested a major update: businesses may soon be able to claim input tax credit (ITC) on the GST they pay for group health and life insurance for their employees.
This means companies could get some money back on these expenses, making it easier (and cheaper) to offer group insurance.
MSMEs could save on employee insurance
If this goes through, MSMEs could save on employee insurance costs, freeing up funds for other business needs or better perks.
Group insurance will still have 18% GST (unlike individual policies, which are now exempt), but the change could help smaller companies attract and keep good people.
The final impact depends on how businesses use these savings once legal changes kick in.