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:
- Bank account statement (must include the premium payment transaction) or
- 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?
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?
Can GST paid in premium payment made during grace period be refunded?
Can GST paid in premium payment towards revival of a policy be refunded?
Can I pay only base premium without GST along with required documents?
Can I seek refund in a bank account from where Premium was not paid?
Can GST refund be claimed for an application that has been withdrawn or postponed?
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?
Is bank statement with masked NRE account number considered as a proof for NRI GST Refund?
Can I claim GST refund beyond same month or financial year of premium payment?
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.
