GST Refund on Health Insurance for NRIs

GST Refund for NRIs Buying Health Insurance from India

NRIs or Non-Resident Indians are eligible for a GST refund if they buy health insurance from an insurance company in India. This is because NRIs are already paying tax in their foreign country of residence and, hence, are exempted from paying tax in India. However, NRIs need to consciously opt for a GST refund at the time of buying their mediclaim policy.

To get a GST refund, the NRI proposer must be one of the insured members of the health insurance policy and should pay the premium using an NRE account. Moreover, the GST refund for NRI health insurance premiums is available on policies with an annual mode of payment.

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

Follow the step-by-step procedure given below to get a GST refund on buying health insurance from India:

Step 1: Visit policybazaar.com and click on ‘Health Insurance’

Step 2: Choose your gender and provide your full name

Step 3: Select the family members that you want to insure along with their ages

Step 4: Enter your city of permanent residence in India or its pin code

Step 5: Choose the international calling code of the foreign country where you stay and provide your overseas phone number

Step 6: Pick the relevant options providing medical history details of the people to be insured

Step 7: Select the health insurance policy that you want to purchase and proceed

Step 8: Fill up the proposal form and pay the premium online via your NRE account

Step 9: Share the required documents after successful payment

Step 10: Talk to our insurance advisors to raise a request for a GST refund

The insurance company will verify all the documents after policy issuance. In case of incomplete or wrong documentation, your GST refund request will be rejected.

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Documents Required to Get a GST Refund on Health Insurance for NRIs

Check out the documents required to get a GST refund on health insurance for NRIs:

TRC or Tax Residency Certificate for NRIs
Address proof of the foreign country of residence
Declaration
Last 6 months’ bank statement of the NRE account used to pay the premium
KYC documents, such as the passport, Aadhaar card, etc.

Note: The list of documents required for a GST refund on health insurance for NRI may vary from insurer to insurer. Also, a GST refund on health insurance renewal is applicable for NRIs if they have taken a GST refund on the fresh policy bought from Policybazaar.com. NRIs do not have to submit the TRC again to avail GST refund on renewals if they have availed GST refund on the fresh policy purchased from Policybazaar.

Summing It Up

Most NRIs pay income tax in the foreign country where they reside. For them, paying GST on their health insurance policy in India is no less than a burden. But by opting for a GST refund, they can claim a GST of 18% paid at the time of buying a medical insurance policy from India. Make sure to submit the required documents to get a GST refund on your health insurance premium.

FAQs

Q1. Can NRI claim GST refund on health insurance?

Ans: Yes. NRIs can claim a GST refund on health insurance purchased from an Indian insurance company if they have paid the premium from an NRE account. Moreover, the policy should have an annual mode of premium payment.
Q2. How much can I claim GST refund?

Ans: As an NRI, you can claim a refund of 18% GST paid on health insurance premiums in India
Q3. How do I claim my tax refund from health insurance?

Ans: If you are an NRI, you can claim a tax refund from your health insurance provider by raising a GST refund request and sharing the required documents, including a Tax Residency Certificate (TRC), a declaration, the last 6 months NRE account’s bank statement, address proof abroad and KYC documents.
Q4. Can anyone claim GST refund?

Ans: Yes, NRIs can claim a GST refund on health insurance if they have purchased a health insurance policy from an Indian insurer on an annual premium mode using their NRE account.
Q5. Should NRIs buy health policies in India?

Ans: Yes. NRIs should purchase a health insurance policy in India to stay covered against medical expenses incurred during their travel or stay in India. Moreover, they can also get a GST refund on their health insurance premium if they are paying tax in their foreign country of residence.

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Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in