Summary
- 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 ā¹8,244/- 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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