From 22 September 2025, the GST on individual health and life insurance premiums is nil (0 percent), down from the earlier 18 percent, so the tax line that used to inflate your premium is now gone.
Quick answer: Since 22 September 2025, individual life and health insurance premiums carry zero GST instead of 18 percent. The change came from the 56th GST Council meeting under GST 2.0. It covers individual term, endowment, ULIP, whole life, and individual health plans including family floater and senior citizen cover. Group and corporate policies stay at 18 percent.
Put a number on it. Take a base premium of ₹20,000. Before the reform, the insurer added 18 percent GST, so you paid ₹3,600 tax and ₹23,600 total. From 22 September 2025, that same ₹20,000 base premium attracts no GST, so the tax component drops to ₹0.
| Item | Before 22 Sep 2025 | From 22 Sep 2025 |
|---|---|---|
| Base premium | ₹20,000 | ₹20,000 |
| GST rate | 18 percent | Nil (0 percent) |
| GST amount | ₹3,600 | ₹0 |
| Total payable | ₹23,600 | ₹20,000 |
Read this table as the 18 percent GST component being removed from the bill. Whether your final renewal figure falls by exactly that amount depends on how your insurer reworks its pricing, explained further down. Treat the ₹3,600 here as the tax that is no longer charged, not as a guaranteed discount on every policy.
The exemption is built around one idea: the insured must be an individual, not a group. On that basis it covers a wide spread of policies.
If you buy or renew any of these in your own name (or as an individual with your family), the premium you are quoted should no longer carry an 18 percent GST line. For how life cover proceeds are treated for income tax, see term life insurance and Section 10(10D).
It is just as important to know the limits of this relief.
This change sits inside the wider tax overhaul. For the bigger picture of the slab rework, read about the GST 2.0 new tax slabs reform.
Because the change is tied to a date, the timing of your payment matters.
One caveat. When a service becomes GST exempt, the insurer also loses the input tax credit it claimed on its own costs for that line, such as commissions and expenses. How the net benefit is passed on at renewal is governed by insurer and regulator guidance, so the headline saving and your actual renewal figure may not be identical. Confirm the exact renewal premium with your insurer in writing rather than assuming a flat 18 percent cut.
A few quick checks confirm the relief has reached your policy.
If a premium dispute or a related claim escalates, follow the grievance path in the insurance ombudsman process. For framing evidence-led complaints and information requests to public authorities, The RTI Playbook is a useful companion.
Real-life example. Kashvi Pathak renews her individual family floater health policy in early October. In 2024 her base premium was ₹20,000 and she paid ₹23,600 after 18 percent GST. When her renewal arrived in October 2025, the notice showed the base premium with a nil GST line, so the ₹3,600 tax component was gone. She asked her insurer for a written premium breakup, compared it against the previous year's notice, and saved both documents.
From 22 September 2025. The decision came from the 56th GST Council meeting held on 3 September 2025 under GST 2.0, and took effect on that later date.
No. Employer-sponsored group health cover and group life policies are outside this specific exemption and continue to attract 18 percent GST. The nil rate is for individual policies.
Not necessarily. The 18 percent GST component is removed, but insurers also lose the input tax credit on that line. How the net benefit reaches you at renewal is governed by insurer and regulator guidance, so confirm the exact figure with your insurer.
No. Premiums paid before the cutover date were correctly taxed under the old 18 percent rule. The relief is not backdated, so there is nothing to reclaim on those earlier payments.
Individual term, endowment, ULIP, and whole life policies are covered, as long as the insured is an individual rather than a group.
Yes. Individual health insurance under the exemption includes standalone individual cover, family floater plans, and senior citizen health plans.
Yes. Reinsurance of individual life and health insurance policies is also exempt, which keeps the relief consistent across the insurance chain.
Check that your renewal notice shows a nil GST line on an individual policy with a due date on or after 22 September 2025, and ask the insurer for a written breakup of base premium and tax.