My wife took a three year extended health insurance policy in Aug 25 and paid the demanded and GST (@ 18%), for the three years period. Effective 22nd Sept 2025 the GST was reduced 0%. I wrote first to the customer care section of the Insurance Co to refund me the excess GST (approx Rs 25,000) collected if it was still with them else to provide me with proof of having paid it the government. The immediate response was that it was not possible to refund the amount. I escalated the matter to their grievance officer, to no avail. What is your opinion on the matter on taking it further. Regards George Mammen
Dear Mammen The zero percent GST on premium of medical insurance policies came into force with effect from 22nd September, 2025. It has not given any retrospective effect, so there is no point in demanding any refund. Any remittance of such tax collection is a strict time bound process, generally, within 7 days, to the respective tax / government authorities. Moreover, GST authorities conduct regular audit of companies and business houses collecting such taxes. So, there is rare chance that the company did not remit the GST collected from you. You may, however, at the time of next renewal, negotiate the premium with the company. Please also note that GST on premium of group insurance policies offered by employers is still 18%
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