Kumar Bahukhandi
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.
