Some reports explain that when a person uses their NPS (National Pension System) corpus to buy an annuity, the purchase attracts no GST, meaning the full amount directed to the annuity goes toward securing the pension. This is presented as a key benefit for people converting their NPS holdings into regular retirement income.
The articles also frame the issue in terms of practicality for those with a smaller NPS corpus. With less money available at the time of conversion, the resulting pension from an annuity can be smaller, which makes planning and product selection important for retirees. While the outlets focus on the GST aspect of annuity purchase, they imply that the size of the retirement corpus affects how much income the annuity can generate. No further differences in facts or policy details are highlighted across the sources provided.
Overall, the common takeaway is that GST does not apply to annuity purchases under the NPS route discussed, but retirees with smaller corpuses may face limits in the level of pension their annuity can provide.
