Case Law Details
In re Syngenta India Limited (GST AAR Maharashtra)
Question 1: – Whether the GST would be payable on recoveries made from the employees towards providing parental insurance?
Answer:– This issue has already been decided by this Authority in the case of M/s Jotun India Private Limited wherein the question raised was similar viz. “Whether recovery of 50% of Parental Health Insurance Premium from employees, amounts to supply of service under Section 7 of the Central Goods and Service Tax Act, 2017?
Vide Order No. GST- ARA- 19/2019-20/B-108 Mumbai dated 04-10-2019 this authority had ruled that recovery of 50% of Parental Health Insurance Premium from employees, did not amount to supply of service under Section 7 of the Central Goods and Service Tax Act, 2017. The only difference between the matter in the subject case and the matter in the Jotun case is that, in the subject case, the applicant is recovering 100% of Parental Health Insurance Premium from employees whereas in the Jotun case the said applicant was recovering only 50% of Parental Health Insurance Premium from employees.
Further, a similar question was also raised by M/s POSCO India Pune Processing Centre Private Limited in their application before this Authority viz “Whether recovery of Parents Health Insurance expenses from employee in respect of the insurance provided by the Applicant amounts to supply of service under Section 7 of the Central Goods and Service Tax Act, 2017? This Authority had answered the question as follows:- The recovery of Parents Health Insurance expenses from employee does not amount to supply of service under the GST Laws. Since there is no supply of services there is no question of time and value of the supply. The applicant cannot claim ITC of GST charged by the insurance company. Even in the case of M/s POSCO India Pune Processing Centre Private Limited, they were recovering only 50 % premium from their employees and in the subject case entire 100% is recovered from the employees of premium paid by the applicant to the Insurance Company.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
excellent update