GST Applicable on claim settlement services provided by Executive Council of Insurers to Life Insurance Council: AAR

M/s. Executive Council of Insurers are quasi-judicial authority established under Insurance Ombudsman Rules, 2017 by the Department of Financial Services, Government of India and works on a No profit No loss basis and receives funds from member insurance companies through LI and GI Councils.

The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act” respectively] by M/s. Executive Council of Insurers, the applicant, seeking an advance ruling.

The Ruling:

1. Whether services provided by ECOI and 17 ombudsman officers exempt from GST?

The services provided by ECOI and 17 ombudsman officers are not exempt from GST.

2. Whether GST is applicable to the Executive Council of Insurers (ECOI) and 17 Offices of Insurance Ombudsmen which are governed by the ECOI?

Answered in the affirmative.

3. Whether payments received by the Life Insurance Council and General Insurance Council on behalf of the Executive Council exempt from GST?

Not answered in view of the discussions made above.

4. The above amount received by the Executive Council of Insurers from the Life Insurance Council and General Insurance Council are also exempt from GST?

Answered in the negative.