📢 Change in GST on PLI & RPLI Insurance Policies

Important Notification

📢 Change in GST on PLI & RPLI Insurance Policies

Dear All,

As per Government of India, Ministry of Finance Notification No. 16/2025 – Central Tax (Rate) dated 17.09.2025, the GST on Life Insurance Services (PLI & RPLI) for individual policies has been reduced to NIL w.e.f. 22nd September 2025.

👉 Key Points:

• GST will not be charged on premiums of PLI & RPLI policies due on or after October 2025.
• GST will still be applicable on premiums that were due up to September 2025 but paid on/after 22.09.2025.
• For new policies accepted on/after 22.09.2025 – No GST will be applicable.
• Default fee/late fee – GST @18% will continue to apply for dues up to September 2025. However, no GST will be charged on default fee for policies due on/after October 2025.
• Reverse Charge Mechanism (RCM) on incentives paid to sales force will continue as per existing practice.
• Input Tax Credit (ITC) on GST paid under RCM for sales incentives will not be available to Post Offices w.e.f. 22.09.2025.

👉 System Changes:

✔ Necessary modifications have been incorporated in the McCamish system centrally.

✔ No refund of GST already collected will be permissible.

✔ GST exemption will be applied automatically in premium & revival cases as per due dates.