Can we claim GST on LIC premium?
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You can claim the entire sum paid as part of the health or life insurance premium. This sum will include GST as well. So, if your total life insurance premium for the year was Rs. 1.5 lakhs including GST, you can claim the entire amount as a deduction under section 80C.
Can we take GST input on insurance?
No ITC is allowed on services of general insurance, servicing, repair and maintenance in so far as they relate to motor vehicles, vessels or aircraft referred to in (1).
Which of these are eligible for deduction under 80C?
Income tax department allows reducing of the taxable income of the taxpayer in case the taxpayer makes certain investments or eligible expenditures allowed under Chapter VI A. 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan.
The individuals buying insurance plans for the first time or renewing their existing insurance policies would have to pay 18 percent GST. It means that that for the payment of every 100 rupees (towards the premium), a service tax of Rs. 15 was levied, which now it is going to be Rs. 18 as per the updated tax plan.
18 percent
The individuals buying insurance plans for the first time or renewing their existing insurance policies would have to pay 18 percent GST. It means that that for the payment of every 100 rupees (towards the premium), a service tax of Rs. 15 was levied, which now it is going to be Rs. 18 as per the updated tax plan.
Why is there GST on LIC premium?
GST is essentially a charge for the supply of services under the life insurance policy, replacing the services tax, so the calculation goes on amounts as under: The gross premium minus the amount allocated for investment, or savings on behalf of the policyholder, if such amount is informed to the policyholder.
Is GST on LIC exempt from income tax?
“Yes, the total amount paid towards health and life insurance (including the GST paid on such insurance premium) qualifies for deduction under Section 80D and Section 80C respectively.
Private health insurance is GST-free. This treatment is consistent with the general treatment of health services under the GST.