STAY ON GST ON RETIREES MEDI INSURANCE PREMIUM

[MOHAN P]

For Information:

All India Union Bank Pensioners & Retirees Federation (AIUBPRF)

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Hon’ble High Court of Kerala Grants Interim Stay on GST Levy on Retirees’ Health Insurance Premium

Comrades and Colleagues,

In the W.P.(C) 36636/2025, the Hon’ble High Court of Kerala has granted an interim stay, directing Union Bank of India to collect the health insurance premium of retirees without GST pending final disposal. The matter is listed for further hearing after 10 days.

The petition, filed by Sri Vinod Mukundan & Others, including the All India Union Bank Pensioners & Retirees Federation (AIUBPRF), was ably argued by Adv. V. K. Prasad, former State Secretary of AIBOC Kerala. 

The writ was challenging the imposition of 18% GST despite the clear intention and notifications of the GST Council to exempt individual health policies (including senior citizen policies) from GST. The petitioners contended that retirees themselves bear the full premium, and the bank is merely a conduit; thus, the bank cannot lawfully levy GST on it.

This judicial intervention represents a significant step in the struggle of retirees. The fact that the High Court has stepped in gives fresh momentum to the demands and strengthens the  UFBU’s position in pressing the Central Government and IBA to issue a binding clarification, exempting the retirees from GST. 

Hearty congratulations to the All India Union Bank Pensioners & Retirees Federation and all the retired leaders steering this collective effort for their commitment to the cause.

Sreenath Induchoodan

8592973200

[MOHAN P]

See below,  the order of High Court Kerala

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[Ramachandran Bella]

Thanks a lot and we retirees are ever indebted you all. Million thanks again.

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[ramamurthy s]

Sir,

Will it apply to all banks or only Union Bank?

Thanks & Regards,
S.Ramamurthy

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[Ashok Shrikhande]

Attached interim stay order

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[Rajamani Srinivasan]

Whether the ruling is only for the plaintiff or for all is a moot point. Or is it for all the members of Kerala unit alone also requires a clarification.

Further, I am of the view such interim stays create more procedural hiccups.

I am reminded of the latest episode on restoration of commutation. Many of our colleagues paid Rs.2000/- each as legal fees and  later the interim orders were set aside. The end result is that a few lawyers earned a hefty amount as fees.

It is the reality.

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[Rajamani Srinivasan]

One more opinion received and appears as logical:

'Think they committed a blunder in not including National Insurance company, as technically except Insurance company none of the Respondents will be renewing the policies.'

Legal experts can offer their opinions.

On Tue, Oct 7, 2025, 17:58 MOHAN P <moha...@gmail.com> wrote:

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[MOHAN P]

As of now, in the W.P.(C) 36636/2025, the Hon’ble High Court of Kerala has granted an interim stay, directing Union Bank of India to collect the health insurance premium of retirees without GST pending final disposal. 

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAHFAJAFxQibHYhC5XJpzbnreZ7sW-BvAL6n1ZsR4HDMfCG6pmQ%40mail.gmail.com.

[JSOMA SHEKARA]

1. This order is applicable only to Union Bank retirees unless IBA makes it applicable to all retirees.

2. Insurance Company is not a party to the case and the court has issued a directive to Banks and not Insurance company. This order is not binding on the Insurance company.

Will it accept premium without GST?

3. The effect of the order is that Banks  will have to bear GST and remit premium with GST to The insurance company.

It is interesting to watch how IBA will react to this?

The Kerala High court previously passed few orders but nothing has reached its logical conclusion.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAMCbyDQ14o1ZK2yYCvUc%3D1G64RuuNBDkLFZ0mwsKjN8BHg20DA%40mail.gmail.com.

[Vvns Varaprasadrao]

Insurance company has nothing to do with GST.  So, it safely accepts premium amount.

The burden of collecting and remitting the GST lies with the Bank/s.

Of course, after the matter comes to an end.

To view this discussion visit https://groups.google.com/d/msgid/bankpensioner/CAM%3DeiW09nm%3DLdHbfFjSJoWBuE195n6MSCwa5p7AKTwpk03rSRQ%40mail.gmail.com.

[Niranjan Cn]

Sir , why IBA is bothered?  If GST applicable banks will collect from retirees and and pay.  If GST not applicable, they don’t collect.  That’s it.

Niranjan 

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[Narayanan Kasthurirengan]

IBA and many of public sector banks are more loyal than the king.  The notorious interpretations  and implementations of banking settlements are the standing proof of this.  

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