GST exempted on all individual life and health insurance policies

The 56th GST Council recommended exempting GST on all individual life insurance policies - term, ULIP and endowment - and on all individual health insurance policies including family floater and senior citizen policies, together with the reinsurance of those policies. The stated purpose was to make insurance more affordable and widen coverage. The Council recommended that changes to GST rates on services be implemented with effect from 22 September 2025.

The recommendation covers individual policies. The press release does not extend the exemption to group or corporate policies, so employer-paid group cover should not be assumed to be exempt.

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