GST Exemption on Individual Life and Health Insurance
Why in the news
The GST Council decided that individual life and health insurance would carry no GST from 22 September 2025, with the stated purpose of making cover more affordable.
Key facts
- Effective date: 22 September 2025.
- Covered: all individual life and health insurance policies in India.
- Reinsurance of these policies is also included in the exemption.
- Tax status: fully exempted from Goods and Services Tax.
- Decided by the GST Council.
Significance
- Improves affordability of cover for individuals.
- Aims to lift insurance penetration nationwide.
Exam angle
- Decision-making body: GST Council.
- Scope: individual life and health policies, plus their reinsurance.
- Date to recall: 22 September 2025.