Guidelines for the payment of GST on late/default/interest fee collection

F. No. 29-09/2023-LI 
Government of India 
Ministry of Communications 
Department of Posts
Directorate of Postal Life Insurance
To.
All the Heads of Circle
Chanakyapuri PO Complex, New Delhi, Dated 22.03.2024

Subject: Guidelines for the payment of GST on Late Fees/ Default fees/interest collected on delayed payment of PLI/RPLI premia - reg.

This is regarding guidelines directions sought by various circles for the payment of GST on Late Fees/ Default fees/interest collected on delayed payment of PLI/RPLI premia w.e.f. 1st July 2017.

It is to intimate that audit has raised objections in different Circles and in this Directorate for the non-payment of GST on the subject cited above.

In view of the above, a detailed accounting procedure is enclosed for smooth payment of due GST.

Therefore, it is kindly requested to issue necessary instructions to the concerned DDOS to ensure that the payment of GST on Late Fees/ Default fees/interest collected on delayed payment of PLI/RPLI premia w.e.f. 1st July 2017 along with applicable interest has been made to the GST Authorities and appropriate return has been filed.

Encl: As above.

Sachidanand Prasad
General Manager (Finance)
Copy to:
The GM (CEPT) with a request to upload the amount of Late Fees/default fees/interest collected on delayed payment of PLI/RPLI premia year-wise/HO-wise for the period 1 July 2017 to December 2023 in the Utility Portal with immediate effect.

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