Recovery of parent’s health insurance expenses from employee is not supply of services – AAR, Maharashtra

Authority for Advance Ruling, Maharashtra in case of Posco India Pune Processing Centre Pvt. Ltd. have recently held that since the applicant is not in the business of providing insurance services and accordingly the reimbursement of expenses attributable to the health insurance of parents is not a supply of services.

Further, the ruling also held that input tax credit of the GST paid on hotel accommodation for providing residential accommodation of the Managing Director / General Manager shall not be available as the same is used for personal consumption.