Input tax credit— Section 17(5) of CGST Act— In the instant case, the applicant is a manufacturer of textile item and supply is also taxable items.

QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT IS AS FOLLOWS—

Whether the applicant can claim input tax credit of GST charged by the Medical/ Health Insurance Company in respect of insurance done for employees?

 Applicant has submitted that input tax credit on Health Insurance Services can be availed if it is obligatory to provide such insurance under any law.

It is a fact that the applicant is a manufacturer of textile item and supply is also taxable items. We find that, neither applicant is a supplier related to health insurance service nor this service has an element of supply of textile. In view of the above the applicant cannot claim ITC of GST charged by the Medical/Health insurance company in respect of insurance done for employees, as provided under section 17(5)(b)(i) of the CGST Act, 2017.

Held that— the applicant cannot claim input tax credit of GST charged by the Medical/ Health Insurance Company in respect of insurance done for employees.