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Kerala AAR: MEDISEP Insurance Premium Paid by Government Exempt From GST

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Summary

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  • The Kerala Authority for Advance Ruling has determined that health insurance services under MEDISEP Phase-II, provided by The Oriental Insurance Co. Ltd. to the Government of Kerala, are exempt from GST.
  • This exemption applies only if the entire premium of ₹8,244/- per Beneficiary Family Unit is paid by the Government for Clause A beneficiaries, which include state employees and pensioners.
  • The ruling clarifies that the government is considered the recipient of the service for GST purposes, despite employees being the insured beneficiaries.
  • This decision could set a precedent for similar insurance schemes funded by state governments across India.

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