NEW DELHI: The staffing industry has reached out to the Goods and Services Tax (GST) Council to seek input tax credit on insurance services procured for its employees.
“We had a meeting with
GST Council and have sought them to either clarify or amend the Act to remove ambiguity with regard to availability of input tax credit on insurance charges incurred on employees,” Suchita Dutta, executive director of the Indian Staffing Federation (ISF), told ET.
The industry says the benefit will encourage it to offer better social security package to workers while also reducing their cost of doing business.
ISF said since insurance services are used by staffing business in the course of furtherance of its outward supply of manpower services, it should be eligible for input tax credit.
“Allow input tax credit of GST paid with respect to health, medical, accidental and life insurance coverage for employees or notify insurance procured for employees as eligible for input tax credit with retrospective effect,” ISF said in its submission to the council on September 25.
Source: economictimes.indiatimes.com