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2022 (6) TMI 192 - AAR - GSTScope of supply - Exemption from GST - services provided by Executive Council of Insurers (ECOI) and ombudsman officers to the aggrieved persons who have grievances against insurance companies/insurers - payment received by the Life Insurance Council and General Insurance Council on behalf of Executive Council - amount received by Executive Council of insurers from the Life Insurance Council and General Insurance Council. Whether there is any supply rendered by the applicant in the subject case and if it is found that the applicant is undertaking a supply, then in such a case whether there is a supply of goods or services or both? - HELD THAT:- The definition of the term 'supply' is an inclusive definition and has to be understood as encompassing a wide range of activities and keeping the same in mind we find that in the instant case, the applicant entertains complaints made by any person or persons against an insurer and after listening to all the concerned parties, decides on such complaints filed by any person/persons who has a grievance against insurer. This is nothing but services rendered to the said person/persons and therefore can be considered as supply as defined under the GST provisions. In this case, it is observed, that applicant is rendering services to the aggrieved persons who have grievances against insurance companies/insurers. The said service is provided by way of by resolving the disputes of the said aggrieved persons with insurance companies. In fact, it is found that the Insurers, being the persons against whom there is a grievance, are also interested in solving the relevant issues and in this context, it is seen that by deciding on the complaints of the aggrieved persons, the insurance company being party to such disputes are also availing the services of the applicant/Ombudsman. Hence, the impugned activity undertaken by the applicant amounts to 'supply of services'. Whether there is consideration involved in the impugned transaction i.e. whether the applicant is receiving any consideration for the services rendered and from whom? - HELD THAT:- Even though the aggrieved persons do not pay any fees to the applicant, and the amounts are received from Life Insurance and General Insurance Council, it can be said that, in the subject case, the consideration for the impugned supply of services, instead of being paid by the aggrieved complainants are being paid by the said Councils/ insurance companies and satisfy sub-section (a) of the section 2 (31) of the CGST Act 2017 i.e the consideration in the instant case, is not done by the recipient of service (i.e. even if, only the complainants are considered as recipient of the service), rather the payment is made by 'any other person' i.e the Life Insurance and General Insurance Council. Therefore, funds received by applicant are covered under definition of 'consideration' paid for the supply of services as they come under the scope of 'by any other person' - thus, the impugned activities are supply of services, made for a consideration by the applicant. Whether the said supply in the course or furtherance of business? - HELD THAT:- The term business covers the mentioned or similar activities whether or not it is for a pecuniary benefit. In the subject case the activity undertaken by the applicant is covered under the definition of 'business', since the meaning of 'business' is very wide and enlarged due to the inclusive nature of the definition. Hence, the impugned activity undertaken by the applicant is a supply of services and the amounts received by the applicant from the Life Insurance and General Insurance Councils are not exempt from GST - Notification No. 12/2017-CTR dated 28.06.2017 exempts the intra-State supply of services of description as specified in column (3) of the Table mentioned therein from payment of GST. The services rendered by the applicant does not specifically find mention in the said notification. Hence, the activities of the applicant are not exempt under the said notification and consequently, the receipt of the amounts by the applicant from the Life insurance and General Insurance Councils are also not exempt from the levy of GST. Whether payment received by the Life Insurance Council and General Insurance Council on behalf of Executive Council are exempt from GST? - HELD THAT:- The payments are not received by the Life Insurance and General Insurance Council on behalf of the applicant, rather the amounts are paid to the applicant on behalf of the insurance companies. However, this question does not fall under the purview of Section 97 of the CGST Act, 2017 and is therefore not answered. Whether the amount received by Executive Council of Insurers from the Life Insurance Council and General Insurance Council are also exempt from GST? - HELD THAT:- It is already held that the concerned amounts paid by the Life Insurance Council and General Insurance Council to the applicant are taxable and not exempt.
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