GST Waiver for NRI on Health Insurance Premium – Eligible & Documents Required for GST Refund on Health Insurance for NRIs


4 min read

Updated on Aug 28, 2023

Like in other products, GST is levied on health insurance policies too. But did you know that an NRI or non-resident Indian with a health insurance policy in India is eligible for a GST refund? GST, or Goods & Services Tax, is a value-added tax (VAT) in India that is levied on products and services sold for domestic usage. 

NRIs or non-resident Indians are people born in India but working and living abroad. NRIs are eligible for a GST refund on health insurance plans bought in India. Let us learn more about it.

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Why are NRIs Eligible for GST Refunds while Buying Health Insurance from India?

We already know that non-resident Indians (NRIs) can get a refund of GST on health insurance if they buy the policy from India. But what makes them eligible for such refunds? NRIs pay taxes in the country they work and live in; hence, they get tax exemptions in India. However, it is important for an NRI policy buyer to consciously opt for a refund of GST while buying the policy from an insurer in India.

Hence, it is necessary for NRIs to make the premium payment of their health insurance plan by using an NRE account. Also, they must pay annual health insurance premiums to avail GST refund.

How to get a GST Refund on Health Insurance for NRIs?

To get a GST refund/GST Waiver on a health insurance policy bought from an insurer in India, an NRI has to follow the steps below:

  • Visit the official website of the health insurance company you want to buy the policy from
  • Go to the ‘Health Insurance’ section
  • Offer details like name and gender etc.
  • Provide details, including the age of family members who will be insured under the plan
  • Enter the details of permanent residence in India with the pin code
  • Provide details of the international code of the city abroad that you live in, along with your overseas contact number
  • Provide details of the medical history of the insured members of the family
  • Choose the health insurance plan that you want to avail
  • Now, duly fill out the proposal form and make the payment of the premium through the NRE account online
  • Once the payment is successfully made, share the details with the insurer
  • You can then speak with an insurance advisor from your insurance provider to raise a GST refund request

It is essential to file the documents properly because the insurance provider will authenticate the documents, and if any wrong information is detected, the refund of GST on the health insurance policy request may be rejected.

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Documents Required for GST Refund on Health Insurance for NRIs

Below are the documents that an NRI would be required to submit to the insurer to get a GST refund on health insurance:

  • NRI Tax Residency Certificate (TRC)
  • Address proof of the country where you are residing
  • Declaration form
  • Bank statement of NRE account of last 6 months
  • KYC documents like passport, Aadhaar, etc.

However, the documents that an NRI is required to submit for a GST refund on health insurance may vary from one insurance provider to another.

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To Sum Up

NRIs are required to pay income tax in the country of their residence abroad. Hence, it is not very easy for them to pay GST on health insurance premiums in India too. Thus, the Indian government allows them the deduction in GST for health insurance. With the option of a GST refund, they can claim 18% of the GST amount on their policy.

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FAQs: GST Waiver for NRI on Health Insurance Premium for NRIs

Is GST applicable to health care services like insurance?

The premium paid on a medical insurance policy attracts a GST of 18%.

What is the health insurance GST rate?

The GST rate on health insurance premiums is 18%.

Is GST applied to the insurance claim received?

GST is not applicable on the claim amount since the insurance company only reimburses the actual loss the insured suffered.

What is the GST rate for health insurance?

The GST rate on health insurance premiums is 18% under the HSN code 997133, like any other insurance scheme.

Can NRI claim 80D?

NRIs are allowed to claim a deduction for the premium paid for health insurance. This deduction is available up to Rs 25,000 in the case of insurance of self, spouse, and dependent children.

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Aug 18, 2023
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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