Posted by 
Health insurance is an essential component of any financial portfolio for diligent people who value financial responsibility. If you are a Non-Resident Indian (NRI), getting health insurance in India is even more important since it protects both you and your family when you travel home for medical treatment.
Purchasing an appropriate health insurance plan in India in advance is advised because waiting around raises the likelihood of issues from pre-existing medical disorders. The positive aspect is that buying an Indian health insurance policy might give NRIs an additional tax benefit. You are qualified for a Goods and Services Tax (GST) refund on your Indian health insurance plan as you are already paying taxes in your home country.
All you have to do is make sure you select the GST refund option when purchasing your policy and that you fulfill the eligibility requirements established by your insurer.
GST Refund Eligibility for Nris
Not all NRIs may be qualified for a GST return on health insurance plans. To be qualified, a person needs to meet specific requirements, such as:
1) Residential Status
GST refunds are available to NRIs who meet the Income Tax Act’s “non-resident” qualification. This implies that you are regarded as an NRI if you spent less than 182 days in India throughout the fiscal year.
2) Taxable Supply
The health insurance policy needs to be included in the list of taxable supplies. Health insurance policies typically fall into this category, however, it’s important to confirm the GST consequences for the particular policy.
Steps To Obtain GST Refund on Health Insurance
1) Check Policy Details
Make sure the health insurance coverage qualifies for a GST refund before starting the refund process. Verifying the GST rate that applies to the policy and if it satisfies the requirements established by the GST rules is crucial.
2) Submit Relevant Documents
When requesting a GST refund, non-resident individuals need to provide supporting documentation. A copy of the health insurance policy, evidence of premium payment, and any additional paperwork required by the GST authorities are included in this.
3) Residential Status Proof
Present proof of your NRI status, such as your passport, visa, and itinerary of travel. This is an essential step in proving that you are eligible for a refund of GST.
4) Application Submission
Apply for a GST refund to the relevant authorities. Usually, you may complete this online via the GST portal. Make sure you accurately complete and attach all necessary papers to prevent delays in the approval of your refund.
5) Verification Process
The GST authorities will examine the accompanying documentation and your application. At this point, they might ask for further details or clarity. To speed up the verification process, you must answer any questions right away.
6) Approval and Refund
The GST authorities will handle the refund processing after your application has been validated and accepted. The bank account you specified on your application will receive credit for the return amount. Use the GST portal to monitor the refund status.
Challenges and Considerations
While NRIs can choose to receive a GST refund on health insurance coverage, there are a few obstacles and things to bear in mind:
- Policy-Specific Variations
The GST consequences may differ throughout health insurance plans. There may be variations in the rates, exclusions, or terms of certain plans. It is imperative that you fully comprehend the effects of GST on the particular insurance you own.
- Change in GST Rates
Government policies have the power to alter GST rates. If NRIs want to be sure they are accurately complying with the current GST rates, they need to be aware of any adjustments or revisions.
- Timely Application
NRIs should start the GST refund procedure as soon as possible to prevent any possible issues. Application delays could lead to missed deadlines and refund loss.
- Documentation Accuracy
Documentation accuracy is crucial. Inconsistencies or errors in the submitted documentation may cause the application for a GST refund to be delayed or denied.