GST Exemption deployed in Postal Insurance Schemes w.e.f 22.09.2025

Respected Madam/sir

As per the information provided by concerned team that "NBF related GST Exemption changes have been successfully deployed in CIS and its functioning as expected". 

-Message from CEPT

POSSIBLE SCENARIOS IN RESPECT OF GST EXEMPTION ON PLI/RPLI CONSOLIDATED IN TABULAR FORM

S.N.	Head	PAYMENT RECEIVED ON OR AFTER 22ND SEP 2025 FOR POLICY DUE IN SEP-25 MONTH or any PREVIOUS MONTH (i.e. 1st Sep as per PLI policy or any previous month for which premium was unpaid)	PAYMENT RECEIVED ON OR AFTER 22ND SEP 2025 FOR POLICY DUE ON OCT MONTH AND THEREAFTER (i.e. 1st Oct 2025 as per PLI policy)	LAPSE POLICY REVIVAL POST 22ND SEP 2025
1	Policy payment on renewal PREMIUM	√ - GST Payable As per Normal Provision (NO CHANGE)	X NO GST	GST payable on premium recovered which was due on or before Sep-2025 and No GST on premium due on or after Oct 2025
1.1	Policy payment on New Policy accepted up to 21-09-2025	√ - GST Payable As per Normal Provision (NO CHANGE)	N.A.	N.A.
1.2	Policy payment on New Policy accepted after 21-09-2025	X NO GST	X NO GST	N.A.
2	Late payment charges / default fee	√ GST Payable @ 18% (NO CHANGE)	X GST Exempt from policy due on or after Oct-2025	GST payable on default fee recovered on policy due in Sep-2025 and No GST on or after Oct-2025

Note: RCM Liability on Incentive paid to agent will continue as per existing structure.

References: - Provision mentioned in Sec 31(5)(a) of GST Act. For details FAQ available on CBIC website may also be seen.

FAQ on GST rate change in PLI and RPLI

Q.no.	QUERY	Clarification
1	For policies where advance premium is already calculated, do we need to revert the GST for them?	No. Refund of GST shall not be permissible if premium stands collected
2	For Renewal scenarios where Suspense amount is greater or equal to the Total Amount to be collected, system collects the GST amount for receipt generation and adjusts the premium amount from Suspense, this scenario will be impacted with the current, so DOP to confirm on the minimum amount which can be considered for receipt generation for such cases	GST shall be reflected on receipt if due and collected, as per the GST scenario mentioned in table.
3	For Revival and Reinstatement cases how to calculate the GST? For e.g.: For a policy if the PTD= 31-Mar-2025, and user is coming on 23-Sep for Reinstatement. Do we need to charge the GST for Apr-Aug-25 month? OR GST should be applicable on the Total premium amount?	GST will only be charged upto Sept. 2025 month policies premium and Default fee (as due date is first of the month) e.g. April to Sept-25
4	Also what will happen to the collections which has happened before deployment, do the GST needs to be reverted?	No. Refund of GST shall not be permissible premium stands collected
5	For HRMS , pay demand file get generated on 15th of every month, and the response of which comes through pay deduction file by 6th of every month, and with Phase 2 changes this date should move to 3rd of every month, so the changes in GST components for HRMS file should be considered from Oct-25 month.	GST exemption w.e.f. Oct-2025. GST to be deducted from the salary of Sept-2025 (as due date is first of the month)
6	Similarly for SI/NACH as well all the demand files gets generated by 19th of every month and response of the same is also received within the same month, so again the changes in GST components for these files should also get considered from next month (Oct-25) onwards	GST exemption w.e.f. Oct-2025. GST to be deducted for the m/o Sept-2025 (as due date is first of the month)