GST Levy On Group Health Insurance Policies Challenged; Kerala High Court Grants Interim Relief To Union Bank Pensioners
The Kerala High Court has granted interim relief to retired employees of the Union Bank by allowing them to renew their group health insurance policies without paying the 18% Goods and Services Tax (GST) on the premium.The Court passed the interim order in a writ petition filed by Vinod Mukundan and others, including the All India Union Bank Pensioners & Retirees Federation, challenging...
The Kerala High Court has granted interim relief to retired employees of the Union Bank by allowing them to renew their group health insurance policies without paying the 18% Goods and Services Tax (GST) on the premium.
The Court passed the interim order in a writ petition filed by Vinod Mukundan and others, including the All India Union Bank Pensioners & Retirees Federation, challenging the levy of 18% GST on group health insurance policies. While the GST levy on individual health insurance has been completely waived off with effect from September 22, group health insurance policies have not been exempted from GST. The petitioners challenged this as arbitrary and discriminatory.
While seeking the response of the Union Government and the GST Council, Justice Ziyad Rahman A.A ordered: "In the meantime, the petitioners shall be permitted to renew the insurance policies for the current year, by making the actual premium without the GST amount."
The Court also clarified that this interim arrangement will be subject to the further orders to be passed by this Court.
The National Insurance Company Ltd was also impleaded as a respondent. The matter will be next heard on November 17.
Case : Vinod Mukundan and others v. Union of India and others | WP(C) NO. 36636/ 2025