E.P. Gopakumar Vs Union of India (Kerala High Court)
The Kerala High Court considered a batch of writ petitions filed by retired employees of various banks who were members of group health insurance policies issued through banking arrangements. The core issue was whether these retirees were entitled to exemption from Goods and Services Tax (GST) on premiums paid for such group health insurance policies pursuant to Notification G.S.R. 666(E) dated 17 September 2025, issued on the recommendations of the GST Council. The petitioners contended that despite the insurer and banks insisting on payment of GST, the exemption applied to their policies, and sought declarations, refund or adjustment of GST already collected, and quashing of circulars providing for GST levy.
The Union of India and the insurer opposed the petitions, contending that the exemption under the notification was confined strictly to individual health insurance policies, including family floater and senior citizen policies, and was never intended to extend to group insurance policies. Reliance was placed on the recommendations of the 56th meeting of the GST Council, the wording of Clause 36D of the notification, and the definition of “group” introduced therein. The respondents further relied on regulations and circulars issued by the Insurance Regulatory and Development Authority of India (IRDAI), which prohibit formation of groups solely for the purpose of availing insurance and require a clearly evident relationship between the group members and the policyholder.
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