top-up insurance company premium from employees and to pay Insurance The company should not face any goods and services do By implication, an authority has said for advance decision.

NS Maharashtra AAR’s decision in an application filed by

said that the recovery of insurance premium is not an activity done “in the course of business or for furtherance of business” and, therefore, should be out of its purview. GST,

The AAR ruled that the company was only paying the insurance premium amount to the insurance company and recovering the premium amount from its employees.

Against this the company is taking input tax credit of the GST paid to the insurance company. “Non-providing top-up insurance/parents insurance coverage will not affect the business of the applicant in any way,” R said.

“This is likely to come to the notice of the industry, as the authorities have adopted a plausible premise that recovery of insurance is not a course or activity undertaken to further the business,” it said. Harpreet Singh, partner, indirect tax, on KPMG India,

Many companies allow employees to buy top-up life or medical insurance on the cover they provide.