Page 34 - GSTL_7th May 2020_Vol 36_Part 1

J16 GST LAW TIMES [ Vol. 36
Ruling :
The Advance Ruling on question posed before the Authority is answered as
under :
(I) Whether amount recovered from the employees towards pa-
rental insurance premium payable to the insurance company
would be deemed as “Supply of Service” by the applicant to
its employees?
Ans. : Answered in negative.
(II) If the first question is answered in affirmative, whether the
value of aforesaid supply would be NIL, being provided in
the capacity of a “Pure Agent”? If valuation is not accepted as
NIL, what would be the value of such supply?
Ans. : As the answer of question No. I is in negative this ques-
tion doesn’t need answer.
(III) If GST is payable on the such amount recovered from the em-
ployees, whether the proportionate GST paid by the applicant
to insurance company towards parental insurance would be
admissible as input tax credit against supply of insurance ser-
vices for employees’ parents?
Ans. : Answered in negative.
Conclusion
Thus, the recovery of parents’ health insurance premium amount from
employee, subsequent deposit with insurance company cannot be treated as
supply of service in terms of Section 7 of CGST Act, 2017 and non-taxable under
GST law.
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[Continued from page J5]

Once the retrospective amendment is made, the suggested course of ac-
tion for various scenarios is tabulated below :

S. Scenario Suggested Course of Action
No.
1 Received Notices/Letters for interest Quote the retrospective amend-
on ITC Component and payment is ment & get the proceedings
pending dropped
2 Filed petitions before the Courts & Quote the retrospective amend-
pending ment & get proceedings set aside
by the court
3 Paid interest on ITC component on Seek refund as and when the re-
own volition/recovered by the reve- fund mechanism is prescribed
nue department along with the retrospective
amendment.
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GST LAW TIMES  7th May 2020  34