New Delhi, May 1 -- Insurance attracts Goods and Services Tax (GST), which increases its price by up to 18%. However, non-resident Indians (NRIs) can save on GST in their insurance premiums.

Take the case of Ankit Jain, a 40-year-old NRI who works as a consultant in Germany. He paid Rs.86,641 for his policy but will receive a Rs.15,595 GST refund, thanks to sub-clause (iv) of Section 2(6) of the Integrated Goods and Services Tax (IGST) Act. It states that when an NRI buys an insurance policy via a foreign address, it is considered an export of a service and thus exempt from GST, said Ashish Karundiya of Ashish Karundia & Co.

In this article, we explain how NRIs can claim a GST refund on their insurance premiums.

When an NRI buys an ins...