FAQs for NRI GST Refund Process

 

What is GST refund?

GST refund is applicable on the premiums received on or after September 1, 2021 that fulfil the Qualification Criteria mentioned below.

The revised process of refunding GST is not applicable on premiums received by the Company on or before August 31, 2021 as the GST for these policies has been deposited and reported to the Government and is not subject to changes/alterations.

In event, where the Government demands GST amount on premiums received on or after September 1, 2021, the policyholder has to submit the duly signed GST declaration form. This indemnifies that the policyholder will pay GST to the Company, who in turn will refund the amount.

What are the ‘Qualification Criteria’s’ for getting GST refund for NRI policyholders?

Below are the criteria’s for NRI policyholders to qualify for GST refund:

  • The residential status of the policyholder should be Non-Resident Indian
  • Entire premium payment should be made from an NRE bank account

Documents to be submitted along with application for GST refund:

  • Scanned copy of duly signed GST declaration form (Click here to download form)
  • Valid international address proof (Mailing or Permanent)

What are the documents to be submitted while placing a request for GST refund?

Documents to be submitted while placing request for GST refund:

  • Scanned copy of duly signed GST declaration form (Click here to download form)
  • Proof of the NRE account from which the premium is debited:
    1. Bank account statement (must include the premium payment transaction) or
    2. Letter from the bank confirming account type as NRE account and premium paid transaction from the same account
  • International address proof (Mailing or Permanent) if not submitted earlier with the application

What is the turnaround time for refund processing?

The refund will be processed within 15 days of policy issuance or date when request was received, whichever is later.

Can the entire amount of GST be refunded?

  • For ULIPs policies, GST levied on premium allocation charges will be refunded
  • For all other policies, the entire GST amount will be refunded

How is the GST refund processed?

  • For ULIPs policies, units will be adjusted to account for the refund amount
  • For all other policies, the refund amount will be transferred electronically to the registered NRE bank account

Can GST paid in premium payment (policy renewal) be refunded?

Payments made towards renewal of policies on or after September 1, 2021, that fulfil the Qualification Criteria are eligible for GST refund.

Can GST paid in premium payment made during grace period be refunded?

Payments made towards renewal of policies during grace period that falls after September 1, 2021 and fulfils the Qualification Criteria are eligible for GST refund.

Can GST paid in premium payment towards revival of a policy be refunded?

Payments made towards revival/reinstatement of policies on or after September 1, 2021, that fulfil the Qualification Criteria are eligible for GST refund.

Can I get automatic yearly GST refund?

  • If you have set up Auto Debit for premium payments from NRE account, you will receive automated yearly GST refund
  • All you need to do is submit a declaration form once for the first reversal. You can submit this declaration in the below ways:
    1. Login to your account on www.iciciprulife.com and fill the form in transactions tab
    2. Email the duly filled form with your policy details to lifeline@iciciprulife.com
    3. Submit the form at your nearest ICICI Prudential Life Insurance branch - Locate now
  • If you have not set up Auto Debit for premium payment, you have to submit an online declaration along with proof of payment through NRE account (bank account statement). Click here to download now
  • 3 simple ways to submit this declaration:
    1. Login to your account on www.iciciprulife.com and fill the form in transactions tab
    2. Email the duly filled form with your policy details to lifeline@iciciprulife.com
    3. Submit the form at your nearest ICICI Prudential Life Insurance branch - Locate now

Can I pay only base premium without GST along with required documents?

Partial payment without GST is not acceptable. Policyholder is required to pay the entire premium amount inclusive of GST.

Can I seek refund in a bank account from where Premium was not paid?

No, GST amount can be transferred only to the NRE account from where the premium payment was made.

Can GST refund be claimed for an application that has been withdrawn or postponed?

No, GST refund can only be claimed for issued policies.

Can office/employer address of a foreign country be accepted in case the GST refund claimant is either seafarer or mariner or in merchant navy?

GST refund can be provided to seafarer or mariner or in merchant navy only if the foreign country residence proof is in the name of policyholder. Office/employer address of foreign country cannot be accepted.

Is bank statement with masked NRE account number considered as a proof for NRI GST Refund?

To initiate the GST refund, we require the full account number clearly visible. In case it is masked on the bank account statement, a cheque leaf with the full account number will be required. For validation, there must be 100% match in the policyholder’s name and the last 4 digits of the account number printed on the bank account statement and the cheque leaf.

Can I claim GST refund beyond same month or financial year of premium payment?

GST refund can be claimed within the same month or the same financial year. The declaration for the same must be submitted in the first 5 days of the next month. For e.g.: If premium is paid in March, the refund declaration must be submitted in April first week.

General Queries

i. Policyholder is a Resident Indian, but payer is an NRI

In this case, Resident Indian policyholders are not eligible to receive NRI GST refund.

ii. Life Assured is a Resident Indian, but proposer is an NRI

In this case, since payment is made from an NRE account, GST can be refunded if the ‘Qualification Criteria’ are met.

iii. Proposer is a Resident Indian but Life Assured is an NRI

In this case, since the premium is not being paid from an NRE account, GST cannot be refunded.

iv. Premium paid from NRO account

In this case, since the premium is not being paid from an NRE account, GST cannot be refunded.

v. Premiums are paid from both NRE and NRO accounts

Premiums paid partially from NRE account are not eligible for GST refund.

vi. Payment made using international credit card payment and SWIFT payments

GST refund is applicable only for payments made through Netbanking, Debit card, Electronic Clearing System (ECS), Direct Debit Mandate or cheque from NRE account. Any other mode of payment cannot be used to claim GST refund.

vii. Premium payment made from NRE joint account towards 2 applications

In this case, if the proof of payment (bank account statement of NRE account) mentions the policyholder’s name, then GST is refund is applicable for both applications.

viii. Payment is made from a different NRE account and refund is claimed from a different NRE account

In this case, GST refund will not be applicable since refund must be claimed from the NRE account used for premium payment.

ix. Premium is paid through transfer of funds (TOF) from an existing policy

In this case, GST refund is not applicable.

x. Premium payment made from multiple NRE accounts and payment mandate captured from a single NRE account

In this case, GST refund is not applicable since complete payment must be made from a single NRE account.

COMP/DOC/Jun/2022/306/0680
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