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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 has written mostly short stories and on human behavior that changed the day to day course of the people who engineered them. He says I am always myself... I just hate being someone else...It's so fake and unreal..."!!I have an everyday religion that works for me. Love yourself first, and everything else falls into line...... I am just a next door person A friend of friends, A Journalist ,who respects every person regardless of his/her stature (but yes, disregards cunning and selfish people).Learnt to get in touch with the silence within myself and knew that everything in life has a purpose. A very simple, Introvert person who believe in "Simple Living and High Thinking", trusts in Modesty. Very truthful to self basic instincts, work, hobbies and family. I Always Listen and Obey what my heart, my inner voice, my soul tells me. I prefer to be true to myself, even at the hazard of incurring the ridicule of others.

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