The court held that GST exemptions on health insurance premiums are limited to individual policies and do not extend to group insurance obtained by retired bank employees.

JUDGMENT

ZIYAD RAHMAN A. A., J.

In all these cases, the petitioners are retired employees of various banks and the members of group health insurance policies issued by the National Insurance Company Limited. The common issue involved in these writ petitions is regarding the question as to whether the petitioners are entitled to the exemption from payment of GST for the premium paid by them towards group insurance policy in the light of the notification published by the Government as per G.S.R.666(E) dated 17.9.2025 based on the recommendations of the GST Council, by which, certain exemptions were contemplated for health insurance policies, from payment of GST. In all these cases, the insurer insisted for payment of GST and the respective banks as well as the Indian Bank Association also required the petitioners to make the payment of premium along with GST. It was in these circumstances, these writ petitions were filed. In W.P.(C)No.38436/2025, the reliefs sought are as follows:

“i) Issue a writ of mandamus or any other appropriate writ, order or direction declaring that the levy of GST at 18% on the premium collected towards renewal of health insurance policies of the retired employees/family pensioners of Punjab National Bank, including the Petitioners, with effect from 01.11.2025 is illegal, arbitrary, and ultra vires Exhibit P1 decision of the GST Council and Exhibit P2 Notification issued by the 1st Respondent.

ii) Declare that the health insurance policy offered to retired employees/family pensioners of Punjab National Bank is covered by the exemption granted under Exhibit P2 Notification, and that no GST is leviable on such policies.

iii) Issue a writ of mandamus or any other appropriate writ, order, or direction commanding the Respondents 1 to 6 to ensure that the renewal premium for the health insurance policy of retirees/family pensioners of Punjab National Bank for the policy year 2025–26 is collected and remitted without levy of GST.

iv. Issue a writ of mandamus or any other appropriate writ, order or direction directing the Respondents to forthwith refund or adjust the GST component already collected from the Petitioners and other similarly placed retirees towards the premium for the policy year 2025– 26. v. Issue a writ of certiorari or any other appropriate writ, order or direction quashing Exhibit P4 Circular dated 18.09.2025 issued by the 4th Respondent, to the extent it provides for levy of GST @18% over and above the premium.

vi. To issue any other writ, direction or order which this Hon’ble Court may deem fit and necessary in the interests of justice.”

Similar reliefs were sought in the other writ petitions as well.

2. Counter affidavits were submitted by the Union of India in all the cases. The National Insurance Company Limited also submitted a separate counter affidavit. In those counter affidavits, the contentions and claims raised by the petitioners were stoutly opposed by placing reliance upon various statutory provisions and the regulations/circulars issued by the IRDAI (Insurance Regulatory and Development Authority of India).

3. I have heard Sri.Renjith Thampan, the learned Senior Counsel, Sri. R.Lekshmi Narayanan, the learned Senior Counsel and Sri.V.K.Prasad, the learned counsel appearing for the petitioners, Sri. George A. Cheriyan (Thiruvalla), learned Senior counsel appearing for the Insurance Company, Sri. P.T. Dinesh, Sri. P.R. Sreejith and Sri.V.Gireesh Kumar, the learned Senior Standing Counsel for the CGST.

4. The main objections raised by the respondents against the claim made by the petitioners seeking exemptio