2026-VIL-32-KER
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SGST High Court Cases

GST – Levy of GST on Group Insurance Policy - Exemption from GST on Group Health Insurance Policy Premiums - The petitioners are retired employees of various banks who are members of Group Health Insurance policies issued by the insurer - Whether the petitioners are entitled to exemption from payment of GST for the premium paid by them towards the Group Insurance Policy, in light of the notification based on the recommendations of the 56th GST Council Meeting – HELD - The exemption provided under the Notification No. 16/2025-CT(Rate) dated 17.09.2025 is applicable only to individual health insurance policies and not to group insurance policies. The recommendations of the GST Council, based on which the notification was issued, specifically mentioned that the exemption is intended for individual health insurance policies, including family floater policies and policies for senior citizens. Further, the notification itself clearly states that the exemption is for services of health insurance business provided by an insurer to the insured, where the insured is not a group - The group insurance policies availed by the petitioners have all the characteristics of a group policy, as they cover a large number of persons who are retired employees of the banks, and the benefits were obtained through collective bargaining by the Indian Banks' Association. The issuance of the policy by following the regulations of the IRDAI, which prohibits forming a group solely for the purpose of availing insurance coverage, indicates that the policy was issued to a group where there is an evident relationship between the members of the group and the policyholder - Since the policy in this case was issued in terms of the IRDAI Regulations that by itself is a certification of the fact that it was a policy issued to a group, as defined under the provisions of the IRDAI Regulations and therefore, the fact that, in the definition of 'group' included in Notification No. 16/2025-CT(Rate) contains a clause that “other than availing insurance”, would not make a difference - The petitioners are not entitled to the exemption from GST on the premiums paid towards the group health insurance policies - The writ petitions are dismissed
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