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2019 (10) TMI 482 - AAR - GSTClassification of supply - supply of services or not - recovery of 50% of Parental Health Insurance Premium from employees - Section 7 of the Central Goods and Service Tax Act, 2017? - HELD THAT:- The documents of insurance scheme submitted on record that the applicant provides Mediclaim cover to their employees’ parents. There are four types of category of scheme wherein sum insured amount for family floater is at ₹ 300000/-and premium amount is fixed as per the number of parents involved therein. The applicant will bear 50% amount for maximum 2 members only and rest of money will be paid by respective employee. It is cashless Mediclaim insurance policy for the lock-in period of 3 years. The mediclaim insurance policy is made from “The Oriental Insurance Company Ltd”. The Applicant is not in the business of providing insurance coverage. Secondly, to provide parental insurance cover, is not a mandatory requirement under any law for the time being in force and therefore, non-providing parental insurance coverage would not affect its business by any means. Therefore, activity of recovery of 50% of the cost of insurance premium cannot be treated as an activity done in the course of business or for the furtherance of business. The recovery of 50% of Parental Health Insurance Premium from employees does not amounts to “supply of service” under Section 7 of the Central Goods and Service Tax Act, 2017.
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