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GST Exemption on Individual Life and Health Insurance

22 September 20251 min read
ECONOMYGST Exemption onIndividual Life andHealth Insurance22 September 2025safalsetu.com

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.

Test yourself

1. From which date were individual life and health insurance policies exempted from GST?

The exemption applied from 22 September 2025.

2. Which body took the decision to exempt individual life and health insurance from GST?

The notes credit the GST Council with the decision.

3. Along with individual life and health policies, what else was exempted from GST?

Their reinsurance was also fully exempted.

This topic is part of Daily Current Affairs 21 & 22 September 2025 (16 topics).

All topics of the dayDay quizSeptember 2025

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