Whether insurance policies issued to Non-Resident Indians, where the premium is paid through the Non-Resident External Bank account, will be ‘export of services’? Would the insurance premiums be taxable in cases where the same is not received in convertible foreign exchange or from the NRE Accounts?
No. The amounts paid from the Non-Resident External Accounts are paid in Indian Rupees and are not received in convertible foreign exchange. Therefore, the conditions for export of services as provided under section 2(6) of IGST Act, 2017 are not satisfied. Life Insurance services in such cases would be treated as inter-State supplies and subject to GST.
Q 68 of GST FAQs on Financial Services Sector published by CBIC