GST on PLI/RPLI Late Fees: Revised Accounting Procedure for India Post (2024 Guidelines)

F. No. 29-09/2023 - LI

Government of India

Ministry of Communications

Department of Posts

Directorate of Postal Life Insurance

Chanakyapuri PO Complex, New Delhi

Dated: 22.03.2024

To:

All Heads of Circle

Subject: Guidelines for 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:

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) is made to GST Authorities.

Appropriate GST returns are filed.

Also read :DOP Instructions regarding Revocation/ review of the role or access or CSI credentials of all employees who are no longer part of the department

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 1st July 2017 to December 2023 in the Utility Portal with immediate effect.

(Sachchidanand Prasad)

General Manager (Finance)

Accounting Procedure (Page 2-4)

1. GST Payment for July 2017–Dec 2023

• Interim Basis: GST to be paid from PLI/RPLI Fund.

• Future Adjustment: After system deployment, GST will be collected from customers, and a contra entry will replenish the Fund.

Steps:

1. Extract Late Fees/Interest data from McCamish (available in Utility Portal).

2. Calculate GST @18% (including interest, if applicable).

3. Also read :Guidelines for rotational transfers of Group ‘C’ officials, Group ‘B’ (Non- Gazetted) officials and Assistant Superintendent of Posts (Group ‘B’ Gazetted)

   Pass accounting entries as below:

Table 1: PLI Accounting Entries

Debit	Credit	Profit Centre
GL 7801601320	GL 8866102720	Post Office Concerned
Payment of Service Tax/GST for PLI	CGST-Collection on PLI Services (GL 8661-00-101-62-01-00)
	GL 8866102740
	SGST-Collection on PLI Services (GL 8661-00-101-62-03-00)
	GL 8866102760
	UTGST-Collection on PLI Services (GL 8661-00-101-62-05-00)

Table 2: RPLI Accounting Entries

Debit	Credit	Profit Centre
GL 7801601370	GL 8866102850	Post Office Concerned
Payment of Service Tax/GST for RPLI	CGST-Collection on RPLI Services (GL 8661-00-101-63-01-00)
	GL 8866102870
	SGST-Collection on RPLI Services (GL 8661-00-101-63-03-00)
	GL 8866102890
	UTGST-Collection on RPLI Services (GL 8661-00-101-63-05-00)

2. GST Payment from Jan 2024 Onwards

• Manual Collection: GST to be collected from customers until automated in McCamish.

• Accounting Entry: 

  Debit: CGST/SGST/UTGST Collection GLs  
  Credit: Drawings from Bank Clearing (GL 48670*****/8670-00-107-01-00-00)  

Table 3: Remittance to GST Department

Debit	Credit	Profit Centre
GL 8866102850	GL 48670*****	Post Office Concerned
CGST-Collection on RPLI Services	Drawings from Bank Clearing (GL 8670-00-107-01-00-00)
GL 8866102870
SGST-Collection on RPLI Services
GL 8866102890
UTGST-Collection on RPLI Services

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Key Notes

• GST Rate: 18% (inclusive of interest).

• Period Covered:

  • Retroactive: 1st July 2017 – December 2023 (interim PLI Fund payment).

  • Current: January 2024 onwards (customer collection).

• Compliance Deadline: Immediate (as per audit directives).