No GST On Health & Term Insurance From Sept 22

The Goods and Services Tax (GST) Council of India has recently revamped the tax rates of several goods and services, like edible items, automobiles, household and stationery items, etc., one of which is Health & Term insurance. The authorities have decided to lift the Goods and Services Tax from Health & Term insurance premiums, which will be implemented by September 22, 2025.

Read the article to learn more about the intricacies of this recent change in GST on Health & Term insurance premiums.

Impact On People

This recent change concerning the change in GST on Health & Term insurance premiums will have a positive impact on the people of India in numerous ways, such as:

• With the Goods and Services Tax coming down from 18% to 0% on Health & Term insurance premiums, more and more people will now be able to afford insurance plans.

• The government aims to encourage the people of India to purchase health and life insurance plans for their own and their families' safety and security against the unpredictable nature of life.

• This measure will instil the feeling of belongingness in people from low-income groups who couldn’t afford insurance policies before. This measure represents the government’s commitment to its people, irrespective of their economic backgrounds.

Please note that this will be applied only to those policies bought on or before September 22, 2025.

Read More: Top 10 Government Health Insurance Schemes