The Government of India brought amendments to the Integrated Goods and Services Act in 2018 and the definition of Export of Service in our section 2×6 was redefined.
Let us see how the life insurance we provide to NRIs fares according to its definition.
According to the Act, export of service means: the service provider must be located in India and the service recipient must be located outside India. Also the place of supply of service should also be outside India.
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How to get GST exemption in NRI’s Life Insurance
Step 1: To avail GST exemption, the policy holder will have to give a written application to the life insurance company.
Step 2: A declaration also has to be given along with the application, in which you have to tell that your non-resident Indian status is continuous and if there is any change in it in future, then it is your responsibility to inform the life insurance company.
Documents Required to get GST exemption
- Residence Proof: Any Utility Bill, Electricity Bill, Gas Bill, of current residence. Driving License, Foreign Passport or any other document having current residence address.
- Visa Validity Proof, If FNIO then need to submit Unique Identification Card which is issued by all countries.
- Passport Copy with Latest Immigration Stamp.
- PhotoCopy NRE Account Cheque Book if not available then Copy First Page of the Passbook is required.
Also Read: Top LIC Insurance Plans for Non-Resident Indians (NRIs): A Comprehensive Guide
FAQ’s
Can a NRI who is already having Life Insurance Policy in india take GST exemption?
Yes, it is possible to avail GST exemption on your life insurance renewal premium by following the above steps.
What will happen if a NRI comes back to India and become indian resident in future?
In such a situation, GST exemption will stop. It is the responsibility of the policy holder to update the insurance company about this change as per the declaration given by the policy holder while availing the GST exemption.
