Dear All,
The Government of India, Ministry of Finance, through Notification No. 16/2025 – Central Tax (Rate) dated 17.09.2025, has announced a major relief regarding GST on Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) policies.
👉 Effective from 22nd September 2025, GST on life insurance services (PLI & RPLI) for individual policies has been reduced to NIL.
✅ Key Highlights:
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No GST will be levied on premiums of PLI/RPLI policies falling due on or after October 2025.
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Premiums due up to September 2025 will continue to attract GST, even if paid on or after 22.09.2025.
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New policies accepted on or after 22.09.2025 will not attract GST.
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Default/late fees:
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For dues up to September 2025 → GST @18% will be charged.
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For dues from October 2025 onwards → No GST on default/late fee.
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RCM on sales incentives to agents/sales force will remain unchanged.
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ITC (Input Tax Credit) on GST paid under RCM for sales incentives will not be available to Post Offices from 22.09.2025.
🛠System Updates:
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McCamish system has been updated with necessary changes at the central level.
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No refund of GST already collected will be allowed.
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Exemption will be auto-applied in premium and revival transactions based on due dates.
