GST Exemption Proposed on Individual Life and Health Insurance
Why in the news
To make insurance cheaper and widen inclusion, the Centre moved to remove GST from individual life and health cover.
Key facts
- GoM on health and insurance: 13 members, led by Samrat Choudhary.
- Goals: lower consumer burden, strengthen healthcare, support schemes such as Ayushman Bharat.
- GST applies only to premiums, not bonuses, surrender amounts, maturity or claim payouts.
| Policy | Existing GST |
|---|---|
| Individual life | 18% on premium; ULIP investment part excluded |
| Individual health | 18% on premium, including riders like critical illness |
| Family floater | 18% on total premium |
| Corporate or group health | Different rules possible, generally 18% |
Exam angle
- Existing rate: 18% on premium.
- GoM head: Samrat Choudhary.