Kerala HC Grants Interim Relief against GST Levy on Group Health Insurance Premiums Paid by Union Bank Retirees [Read Order]

The Kerala High Court has granted interim relief to retired employees and family pensioners of Union Bank of India by directing the authorities not to levy GST on health insurance premiums for the policy year 2025-26.

The interim protection was granted after a writ appeal challenged the levy of GST on such group insurance premiums.

The appellants include retired bank employees and the All India Union Bank Pensioners & Retirees Federation.

The order was passed by a Division Bench comprising Justice V.G. Arun and Justice Harisankar V. Menon in WA No. 111 of 2026, filed against the single judge judgment of the Kerala High Court which dismissed the retirees’ plea for GST exemption.

It was held that the GST exemption on health insurance is applicable only to individual health insurance policies and not to group mediclaim policies obtained through banks or the Indian Banks’Association.

Admitting the appeal, the High Court directed that GST shall not be levied on insurance premiums paid by the appellants and similarly placed retirees or family pensioners of Union Bank of India for the policy year 2025-26.

The appellants submitted an undertaking that if the writ appeal is decided against them, the GST would be duly paid in accordance with law.

The Division Bench put up the matter for further hearing on February 23, 2026.

The interim order seeks to provide temporary relief to Union Bank retirees awaiting adjudication of the issue relating to the scope of GST exemption.

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