Indians living Abroad can now avail GST Exemption on their LIC policy. Non-resident Indians have the same rights as Indian citizens when it comes to Goods and Services Tax (GST) exemptions. If a Non-Resident Indian meets the criteria set out in the applicable law, he/she can avail of this benefit.Read more
Non-Resident Indians (NRIs) have received a major tax relief from the Government of India, in the form of exempting them from paying Goods and Services Tax (GST). This exemption was announced as part of the Union Budget 2021. The announcement provides much needed relief to NRIs who are living abroad and are willing to buy LIC plans to secure their loved ones.
The GST is 4.5% in the first year premium and subsequently it is charged @ 2.25% of the premium amount for the remaining years.
In order for an NRI to be entitled to a GST exemption, he/she must meet all three criteria:
They must have paid incomes from outside India,
Their stay in India during any financial year should not exceed two hundred days;
They must hold a valid long term visa such as Person of Indian Origin (PIO) or Overseas Citizen of India (OCI).
The GST exemptions announced by the government have been welcomed by NRI policyholders across the world who were previously subject to high taxation rates while buying life insurance products in India. With this move they can now avail all types of benefit provided under different LIC policies without worrying about hefty taxation charges.
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