Every year, around 25 lakh Indians migrate overseas, which is the highest annual number of migrants in the world. For Non-Resident Indians (NRIs), buying health insurance in India is vital as it helps them safeguard their family back home and even themselves in case they require medical treatment while visiting India.
Currently, GST of 18% is applicable on premiums paid on health insurance at the time of sale or renewal. The recent development of GST refunds on health insurance is a welcome move towards making health coverage more attractive and affordable for NRIs.
The eligibility criteria for obtaining a GST refund on health insurance are simple:
- The proposer must be an NRI
The individual applying for the policy, whether for themselves or their family, is known as the proposer. To qualify for a GST refund, the proposer must be an NRI.
- All payments must originate from an NRE account
All policy payments must originate from an NRE (Non-Residential External) account. An NRE account is used by NRIs to deposit their foreign earnings to be used for transacting in India.
Apart from these, there may be additional insurer-specific requirements for insured members and documentation.
Once the documents have been successfully verified, the policy is issued, and the GST refund process is initiated. Typically, these refunds are processed within 15 days of policy issuance.
India has long been renowned for offering high-quality healthcare at an affordable cost. Tax benefits on health insurance plans will further help NRIs secure quality treatment without straining their budgets.
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