In re The Oriental Insurance Co. Ltd. (GST AAR Kerala)
Summary: Kerala Authority for Advance Ruling held that health insurance services proposed to be supplied by The Oriental Insurance Co. Ltd. to the Government of Kerala under MEDISEP Phase-II in respect of beneficiaries covered under Clause A of the draft Memorandum of Understanding qualify for GST exemption under Sl. No. 40 of Notification No. 12/2017-Central Tax (Rate), provided the entire premium payable to the insurer for such beneficiaries is paid by the Government of Kerala.
The applicant, a Central Public Sector Undertaking engaged in general insurance, was selected by the Kerala Government to run Phase-II of the Medical Insurance Scheme for State Employees and Pensioners (MEDISEP) for five years from 01.02.2026 to 31.01.2028, subject to enrolment under the scheme being compulsory for all eligible employees and pensioners. The Government Order fixed the annual premium for Beneficiary Family Unit (Rs. 687/- per month) for the first policy year, exclusive of GST, at Rs. 8,244/-. The contractual documents divided beneficiaries into two categories.
Clause A covered Government employees and pensioners, employees and pensioners of Universities and Local Self-Government Institutions receiving Grant-in-Aid from the State Government, and specified personal staff. Under Clauses 10.1.1 and 10.1.2 of the draft MoU, the annual premium of Rs. 8,244/- per Beneficiary Family Unit for Clause A beneficiaries was payable solely by the Government of Kerala, which undertook to bear and pay the entire premium. No premium was collected directly by the applicant from those employees, pensioners or other eligible beneficiaries.
Want to Read the Complete Judgment?
You have read the free case summary. Unlock the full judgment, the detailed judicial reasoning and the downloadable PDF, along with every other premium judgment on TaxGuru.
Already subscribed? Log in
One subscription covers the entire premium judgment library, not just this case.
