The Government of Rajasthan on July 09, 2024, issued a clarification on the requirement of reversal of input tax credit in respect of the portion of the premium for life insurance policies that are not included in taxable value.
The following has been stated: -
•It is clarified that the amount of the premium for taxable life insurance policies, which is not included in the taxable value as determined under rule 32(4) of RGST Rules, cannot be considered as pertaining to a non-taxable or exempt supply and therefore, there is no requirement of reversal of input tax credit as per provisions of Rule 42 or rule 43 of RGST Rules, read with sub-section (1) and sub-section (2) of Section 17 of RGST Act, in respect of the amount.
The detailed circular is given in the document below.
[GST Circular No.07/2024]
