The government has proposed several amendments to the GST law

Categories: GST Recent News, News
No Comments

The government has proposed several amendments to the GST amendments to the GST law to make it more business-friendly and allow tax credits that will help lower burden. Several genuine transactions, which were earlier not eligible for input tax credit (ITC), will now be eligible.

For instance, the draft amendments provide that employers will be allowed to claim ITC for supply of food, beverages, health services, life insurance, travel renting or hiring of motor vehicles, given to employees under the Maternity Benefit Act will also earn tax ..

Similarly, in some states the rules mandate that companies provide life insurance covers to security guards and drivers of cash vans that ferry money between currency chests and ATMs.

With the amendments, the GST charged on the premium will be eligible for ITC. Some of the states have also mandated providing a  drop facility to women employees at night. IIf the amendments go through, the GST paid to taxi operators can be claimed as ITC. 

Read more at: