TaxTMI 
TaxTMI 
2019 (10) TMI 482
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....made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to 'SGST Act" would means CGST Act / MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- (I) Statement of relevant facts having a bearing on the question(s) raised (A) M/s. Jotun India Private Limited (hereinafter referred to as "the Applicant"), is a leading manufacturer, supplier and exporter of paints and powder coatings. The Applicant supplies paints and coatings that are specially designed for unique conditions to the various customers. (B) The Applicant has introduced parental insurance scheme for employees' parents. It is an optional scheme provided to the employees. As per this scheme, the Applicant initially pays the entire premium along with taxes to the insurance company. The insurance company issues the premium receipt in the name of the Applicant. (C) In case of the employees who opt for the parental insurance scheme, the Applicant recovers 50 per cent of the premium in....
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....s or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1), (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1), (1A) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as (a) a supply of goods and not as a supply of services, or (b) a supply of services and not as a supply of goods (5) Thus, in order to constitute a 'supply', the following elements are required to be satisfied: (i) there should be supply of "goods" and / or services"; (ii) supply is for a "consideration"; (iii) supply is made "in the course or furtherance of business": (6) From the above, it is clear that any activity done agains....
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.... Applicant in any way. (10) Also, the applicant is engaged in manufacture of paints and powder coating. Providing parental medical insurance service is not the business of the Applicant. The service of insurance is actually provided by the Insurance Company for which the Insurance Company is charging GST. The Applicant is just paying the parental insurance premium amount to the insurance company and recovering 50% of the premium amount from the employees. (11) Thus, it is crystal clear that firstly, Applicant is not in the business of providing insurance coverage, Secondly, to provide parental insurance cover is not a mandatory requirement under any law for the time being in force and therefore, non-providing parental insurance coverage would not affect its business by any means. Therefore, activity of recovery of 50% of the cost of insurance premium cannot be treated as an activity done in the course of business or for the furtherance of business. (12) Accordingly, based on the reading of Section 7 and Section 2(17) of the CGST Act, 2017, the Applicant is of the view that providing parental medical insurance service and recovery of 50% amount is not in the course or furth....
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....activity as factory manufacturing & in brief it says "we supply paints and coatings that are specially designed for unique conditions". The dealer has requested whether recovery of 50% of Parental Health Insurance premium from employee amount to supply of services" u/s 7 of CGST Act, 2017. The Section 7 of CGST Act, 2017, the Schedule III specifies the activities or transactions, that are treated neither as a Supply of Goods or a Supply of Services, as follows; "(1) Services by an employee to the employer in the course of or in relation to his employment. (2) Services by any Court or Tribunal established under any law for the time being in force. (3)(a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; (b) the duties performed by any person who holds any post in pursuance of the provisions of the Constitution in that capacity: or (c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deem....
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....) M/s. Jotun India Private Limited (hereinafter referred to as "the Applicant"), is a registered person under GST Act and is a manufacturer, supplier and exporter of paints and powder coatings. The Applicant supplies paints and coatings that are specially designed for unique conditions, to the various customers. (2) The applicant introduced Parental Insurance Scheme for employees' parents. It is an optional scheme provided to the employees. As per this scheme, the applicant initially pays the entire premium along with taxes to the insurance company. The insurance company issues the premium receipt in the name of the applicant. The applicant thereafter recovers 50 per cent of the premium amount through salary in one installment in case of staff and in three installments in case of operators and balance 50 percent amount is borne by the applicant himself. The applicant is mainly engaged in manufacture of paints and powder coating. The parental medical insurance service is not the business of the applicant. This service of insurance is actually provided by the Insurance Company. The applicant is just paying the parental insurance premium amount to the insurance company and out of t....