A #company buys a car for business use…
It takes a group health insurance policy for its employees.
Both are “genuine business expenses”.
Yet, under the present #GSTlaw, ITC is either restricted or available only in limited circumstances.
Could that change soon!?
The “𝗚𝗦𝗧 𝗟𝗮𝘄 𝗖𝗼𝗺𝗺𝗶𝘁𝘁𝗲𝗲” has reportedly proposed allowing #ITC on staff vehicles purchased by companies and on group health and life insurance policies for employees, subject to the GST Council’s approval.
If approved, this could reduce the tax cost of doing business and bring greater clarity on what constitutes a #BusinessExpense under GST.
For now, this remains a “#proposal“, not the “#law“.
Until the #GSTCouncil approves the recommendation and the necessary amendments or notifications are issued, the existing provisions continue to apply.
It is worth tracking this development closely, especially for #businesses where #EmployeeWelfare and operational mobility are integral to their day-to-day functioning.
Let’s wait for the Council’s decision.
