GST Panel Proposes ITC Benefits on Employee Vehicles and Insurance

Companies could become eligible to claim input tax credit (ITC) on vehicles purchased in their name and provided to employees for official or staff-related use. The proposed relief may also cover premiums paid for group health and group life insurance policies provided to employees.

These changes were reportedly recommended by the GST Council’s Law Committee as part of measures intended to simplify business operations and reduce corporate costs. The recommendations will require consideration and approval by the GST Council at a forthcoming meeting before they can take effect. CA Sansaar