RECOVERY OF GST ON IBA GMIS ON DISMISSAL IF WP BEFORE KERALA HC.

[MOHAN P]

Dear Friends,

GST amount for Group Medical Insurance Policy for Retired Employees/Family Pensioners (01.11.2025-31.10.2026)

01.As you may be aware National Insurance Company Ltd. (NICL) has communicated earlier   that, all member banks are required to remit the premium strictly in accordance with the Interim orders of the Hon'ble High Court of Kerala without collecting GST.

02.So banks have only collected premium from retirees/family pensioners  excluding GST on IBA GMIS in Oct'25 and remitted the same to National Insurance Co,subject to final judgement of Hon.H.C of Kerala.

03.Hence, the premium amount was deducted without GST most banks and remitted to insurance company for successfully register retired employees/family pensioners, subject to the final judgment to be passed by the Hon'ble High Court of Kerala.

04.As per the recent communication from NICL, to banks,consequent upon the dismissal of writ petitions ruling that GST exemption applies only to individual health insurance policies and does not extend to group health Insurance policies,it is requested to banks to  remit applicable GST amount of 18% on IBA GMIS 2025-26 immediately.

Banks have found issued circulars  on this aspect  and please take note to provide required fund in your SB account to enable to debit applicable GST amount soon to keep the policy in force.

It may be noted that the policy issued by NICO has  incorporated  the following wordings  in current years IBA GMI Policy in this regard.

[MOHAN P]

Dear Friends,

Pl check up with your bank on GST amount to be paid on IBA GMIS to National Insurance Co consequent upon the verdict of Kerala High Court last day.

Keep your health policy active.

For information only:

On Base Policy and Top Up Policy the  amount is to be maintained in respective accounts by 13 th Jan..is as under:

    ***Base Policy ***

1).Rs.3.00 lakhs...

Single keep balance Rs.4375/- 

For Double / Family keep balance  Rs.4861/-

2).Rs.4.00 lakhs....

Single Rs.5,265/-

For Double...Rs.5,581/-

3).Rs.5.25 lakhs...

Single Rs.6,693/-

For Double..Rs.7,242/-

4).Rs.7.00 lakhs...

Single Rs.8,641/-

For Double..Rs.10,801/-.

*With respect to GST on Top Up Policy* :

1).Rs.1.00 lakh...

Single..Rs.1,912/-

Double...Rs.2,251/-

2).Rs.2.00 lakhs..

Single.Rs.3,061/-

Double Rs.3,601/-

3).Rs.3.00 lakhs.. 

Single Rs.4,483/-

Double..Rs.5,275/-

4).Rs 4.00 lakhs..

Single Rs.5,617/-

Double..Rs.7,021/-

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