Chanakyapuri PO Complex,
New Delhi - no o2i.
Dated 26.06.2025
Subject: Accounting of outstanding GST on Default Fee for the Period from 1st July 2017 to 31st December 2023 being collected retrospectively– Reg.
Sir/Madam,
Kind reference is invited to this Directorate's letters dated 03.01.2024 and 22.03.2024 (copies enclosed), wherein instructions were issued regarding the payment of GST on default fees from the POLIF/RPOLIF fund for the period from 1st July 2017 to 31st December 2023. Additionally, instructions were issued vide this Directorate's letter dated 31.05.2024 (copy enclosed) for maintaining a manual register to collect GST data at HO/SO/BO levels, until the functionality for automatic GST deduction on default fees was incorporated in the McCamish system.
Subsequently, the automatic deduction functionality for GST on default fees was implemented in the system on 08.02.2025. Circle-wise data (HO/SO/BO) was sought via this Directorate's letters dated 20.03.2025, 08.05.2025, etc. to enable backend updation of GST on default fee collection for the period 1st January 2024 to 08.02.2025 by the Infosys team, thereby avoiding double collection.
Now, the functionality for recovery of unpaid GST on default fees for the period 1st July 2017 to 31st December 2023 has been implemented in the system on 14.06.2025. The amount of outstanding GST on default fee is now being displayed in the system during both premium collection and payouts of PLI/RPLI policies.
As the GST amount on default fees for the said period has already been paid to the tax authorities from the POLIF/RPOLIF fund, the amount now being collected from customers retrospectively is to be recouped into the respective fund by following the process given below after confirmation by concerned Post Office that GST was earlier deposited out of POLIF / RPOLIF as per this Directorate's instructions.
The amount collected from customers as outstanding GST on default fees is to be accounted for manually under the following GL Codes/Accounts Codes:
| Scheme | GLs (SAP)/Accounts Code (I.T. 2.o) | Head of Accounts |
|---|---|---|
| PLI | 780601320/801601900 | 8016-06-107-01-01-00 |
| RPLI | 780601370/8016012100 | 8016-06-107-02-01-00 |
You are requested to kindly issue necessary instruction to all HOs/SOs/BOs under your jurisdiction to account for the outstanding GST on default fee collected for the period from 01.07.2017 to 31.12.2023 in the above mentioned Head of Accounts.
Encl: As above.
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