Guidelines for Payment of GST on Late Fees/Default Fees/Interest for PLI/RPLI Premia: Instructions from Ministry of Communications (DOP) Date: 22nd March 2024
The Government of India, Ministry of Communications, Department of Posts, Directorate of Postal Life Insurance (PLI), has issued guidelines F, No, 29-09/2023 - LI concerning the payment of Goods and Services Tax (GST) on late fees, default fees, and interest collected on delayed payments of PLI/RPLI premia, effective from 15th July 2017. The directive aims to ensure compliance with GST regulations and address concerns raised during audits across various circles.
Audit observations have highlighted instances of non-compliance regarding GST payments on the aforementioned fees and interest, both at the circle level and within the Directorate. In response, detailed accounting procedures have been outlined to facilitate the smooth payment of GST dues.
To ensure adherence to these guidelines, all heads of circles are urged to disseminate necessary instructions to the designated Drawing and Disbursing Officers (DDOs). These instructions entail verifying that GST payments, along with any applicable interest, have been remitted to the GST authorities, and requisite returns have been filed accordingly.
Additionally, General Manager (Finance) Anand Prasad has instructed the General Manager (CEPT) to promptly upload data pertaining to late fees, default fees, and interest collected on delayed payments of PLI/RPLI premia on a year-wise and head office-wise basis for the period spanning from 1st July 2017 to December 2023. This data upload is requested to be carried out via the Utility Portal without delay.
For further details and the complete set of guidelines, please refer to the enclosed document.
