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No GST On Health, Life Insurance Premium

In a major relief to policyholders, the GST Council on Wednesday September 3, 2025 decided to exempt individual life and health insurance premium from the levy of goods and services tax (GST), the Union finance minister Nirmala Sitharaman announced on Wednesday.

This will be effective from September 22, 2025, the first day of Navratri.

Mumbai: In a major relief to policyholders, the GST Council on Wednesday September 3, 2025 decided to exempt individual life and health insurance premium from the levy of goods and services tax (GST), the Union finance minister Nirmala Sitharaman announced on Wednesday.

This will be effective from September 22, 2025, the first day of Navratri. This includes all individual life insurance policies whether term, ULIP, or endowment, and all individual health insurance policies, including family floaters and senior citizen covers. Reinsurance of health insurance policies will also be exempted from GST.

At present,health insurance premiums and term life insurance attract 18 per cent GST while the rate varies for other categories of life insurance.Sitharaman at a post briefing said that they are reducing the current 18 per cent GST on insurance services into two to three lower categories, with the key step being the full exemption of GST on individual policies. The move is aimed at making insurance affordable for the common man and expanding insurance coverage, she said.

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  • Kumar Bahukhandi

    Kumar Bahukhandi is a journalist, educator and writer, and an Assistant Professor of Journalism and Mass Communication. He is the Founder and Editor of Channel24India and Editor of Prime Look – The International Research Journal and Prime Review. His writing explores human behaviour, relationships, emotions and the choices that shape everyday life. Through journalism, short stories and reflective essays, he brings together academic inquiry and a curiosity about people. Guided by the principle of “simple living and high thinking”, Kumar values authenticity, modesty and respect for every individual, regardless of status or background. He believes in remaining true to himself, listening to his inner voice and finding meaning in ordinary experiences.

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