The Government of West Bengal on July 08, 2024, issued clarification of the Requirement of Reversal of Input Tax Credit in Respect of the Portion of the Premium of Life Insurance Policies which is 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 WBGST Rules, cannot be considered as on 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 WBGST Rules, read with sub-section (1) and sub-section (2) of Section 17 of WBGST Act, in respect of the amount.
[Trade Circular No. 08/2024]
