Kerala HC Stays Collection of GST on Health Insurance Premiums for Union Bank Retirees

The Kerala High Court granted an interim stay on GST collection from Union Bank retirees on group health insurance premiums. The petitioners argued that such deductions were unjustified as retirees are not engaged in business or supply of services. The court found prima facie merit, holding that GST applicability to post-retirement benefits requires careful scrutiny. The decision temporarily relieves retirees from tax burden while awaiting final adjudication. It also highlights the need for uniform policy clarity for PSU and government retirees under GST provisions, balancing fiscal intent with welfare considerations.