Employee Mediclaim Policy Not a Service Supply Under CGST Act; Premium Recovery Not a Supply of Service.

Supply of service or not - The activity undertaken by the applicant like providing of mediclaim policy for the employees and their parents (parents of the employees) through the insurance company neither satisfies conditions of section 7 to be held as “supply of service” (in the instant case, insurance service) nor is it covered under the term “business” of section 2(17) of CGST ACT 2017. Hence, we find that the applicant is not rendering any services of health insurance to their employees' parent and; hence, there is no supply of insurance services in the instant case of transaction between employer and employee. - Thus, the recovery of the Top Up Insurance/Parental Insurance Premium from employees does not amounts to “supply of service” - AAR .....

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