Classification of service— The present application has been filed by the applicant, seeking an advance ruling in respect of the following questions.

1. Whether services provided by ECOI and 17 ombudsman officers are exempt from GST?

2. Whether GST is applicable to Executive council of insurers (ECOI) and 17 Offices of Insurance Ombudsmen which are governed by the ECOI?

3. Whether payment received by the Life Insurance Council and General Insurance Council on behalf of Executive Council are exempt from GST?

4. The above amount received by Executive council of insurers from the Life Insurance Council and General Insurance Council are also exempt from GST

The applicant has submitted that they are an administrative body set up to facilitate the functioning of officers of Insurance ombudsman in India which decides on complaints filed by any person who has a grievance against insurer.

The first thing to find out in the subject case is, whether there is any supply rendered by the applicant in the subject case and if it is found that the applicant is undertaking a supply, then in such a case whether there is a supply of goods or services or both.

In the subject case, the consideration for the impugned supply of services, instead of being paid by the aggrieved complainants are being paid by the said Councils/ insurance companies and satisfy sub-section (a) of the section 2(31) of the CGST Act 2017 i.e the consideration in the instant case, is not done by the recipient of service (i.e. even if, only the complainants are considered as recipient of the service), rather the payment is made by 'any other person' i.e the Life Insurance and General Insurance Council. Therefore, funds received by applicant are covered under definition of consideration' paid for the supply of services as they come under the scope of 'by any other person'.

The impugned activities are supply of services, made for a consideration by the applicant. 

In the subject case the activity undertaken by the applicant is covered under the definition of business', since the meaning of business' is very wide and enlarged due to the inclusive nature of the definition. Hence, the impugned activity undertaken by the applicant is a supply of services and the amounts received by the applicant from the Life Insurance and General Insurance Councils are not exempt from GST.

Held that— The services provided by ECOI and 17 ombudsman officers are not exempt from GST. GST is applicable to Executive council of insurers (ECOI) and 17 Offices of Insurance Ombudsmen which are governed by the ECOI