Levy of GST— Subject appeal is filed against the order passed by advance ruling. The applicant M/s. Hyderabad metropolitan water supply and sewerage board, have paid Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members and Vehicle insurance Policy taken to provide Insurance to the vehicles owned by the Board.

In their opinion they are exempt from paying GST in view of the Entry No. 3 of the Notification Number 12/2017 – Central Tax (Rate), dt 28th June, 2017, wherein it is provided that Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution, the rate of GST is NIL. In their opinion being a governmental authority, the above entry No.3 is applicable to them. 

The applicant filed an appeal before the lower authority seeking advance ruling on the following questions.-

(1) Does Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members, eligible for exemption as mentioned in Entry No. 3 of the Notification Number 12/2017 – Central Tax (Rate), dt 28th June, 2017.

(2) Does Vehicle insurance Policy taken to provide Insurance to the vehicles owned by the Board, eligible for exemption as mentioned in Entry No. 3 of the Notification Number 12/2017 – Central Tax (Rate), dt 28th June, 2017.

The above entry was amended Vide notification no. 16/2021 – Central Tax (rate)dated 18-11-2021 against serial number 3, in column (3), in the heading ” Description of Services” , the words “or a Governmental authority or a Government Entity” is omitted.

In view of the above from 18-11-2021, in view of the amendment mentioned above omitting the word ‘Government authority’, the services provided to the applicant are not eligible for exemption under Sl.No 3 of Notification no 12/2017 dated 28-06-2017.

Medical insurance premium taken to provide health Insurance to the employees, pensioners and their family members, not eligible for exemption as mentioned in Entry No. 3 of the Notification Number 12/2017 -Central Tax (Rate), dt 28th June, 2017.

Held that— The order passed by the lower authority is upheld. The subject appeal is disposed accordingly.