Question99:
Please  note that every industry is supposed to provide compensation to its workmen in case of any mishappening or unfortunate happening in course of office duties, in terms of some "Workmen Compensation Act". This insurance taken by our client company to insure against such mishap. Pl suggest if input credit can be taken of GST paid on insurance premium paid on such policy since there's no law as such to obtain insurance for such cases. 

Answer
The Section 17(5)(b)(iii)  says that ITC on Life insurance and health insurance is available where the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force.
It means the requirement of insurance should come from law. In case the "Workmen compensation Act" mandatory requires Insurance then you can take credit. If you are getting insured to create funds as & when required to fulfill liability of Workmen Compensation Act. You can not say insurance is requirement of law.
So in this case credit is not allowed. (Reply dt. 23/4/2018)