The Government of Uttar Pradesh on July 05, 2024, issued Clarification on the Requirement of Reversal of Input Tax Credit in Respect of the Portion of the Premium of Life Insurance Policies that is not included in the 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 UPGST 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 UPGST Rules, read with sub-section (1) and sub-section (2) of Section 17 of UPGST Act, in respect of the amount.
The detailed circular is given in the document below.
[Circular No. GST/2024-25/75/State Tax]
