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AAR rules GST payable on medical health insurance premium for employees

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AAR rules GST payable on Medical Health Insurance Premium for Employees Medical health insurance premium paid by companies, including statutory bodies for employees would be chargeable with goods and service tax (GST).

The Telangana Authority of Advance Ruling (AAR) has ruled that GST is payable on medical health insurance premiums for employees even by municipal and other statutory bodies that get tax exemption on various services they provide.

The Telangana AAR ruling came on an application filed by M/s. Hyderabad Metropolitan Water Supply and Sewerage Board that wanted to know whether it is liable pay GST on medical insurance premiums it paid to provide health insurance to the employees, pensioners and their family members.

The application also sought advance ruling on tax applicability on the vehicle insurance policy taken to provide insurance to the vehicles owned by the Board.

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