Case Law Details
In re TATA Power Company Limited (GST AAR Maharashtra)
Whether the recovery of an amount towards Top-up and parental insurance premium from the employees, amounts to a supply of any service under section 7 of the Central Goods & services Tax Act, 2017?
We find that the activity undertaken by the applicant like providing of mediclaim policy for the employees and their parents (parents of the employees) through the insurance company neither satisfies conditions of section 7 to be held as “supply of service” (in the instant case, insurance service) nor is it covered under the term “business” of section 2(17) of CGST ACT 2017. Hence, we find that the applicant is not rendering any services of health insurance to their employees’ parent and; hence, there is no supply of insurance services in the instant case of transaction between employer and employee.
5.14 Applicant has referred the ARA order in case of M/s POSCO India Pune Processing Center private Limited (POSCO IPPC) vide Order NO.GST-ARA-36/2018-19/B-110 Mumbai dated 07-09-2018 wherein facts are identical and similar to that of the facts of applicant and ARA had ruled that, “they are not rendering any service of health insurance to their employees and hence, there is no supply of services in the instant case”. Considering the similar nature of facts and earlier ruling, as referred above, the same ruling is confirmed in this matter also.
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