GST Removed on Insurance Premiums: Big Relief for Policyholders

The GST Council has taken a bold move and removed the 18% Goods and Services Tax (GST) on health and life insurance policies. This move, effective September 22, 2025, means that individuals and families across India will pay less in premiums. People will have more access to health and life insurance products, with coverage increasing over the coming weeks.

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GST Removed on Insurance Premiums: Big Relief for Policyholders ✅ What Changes Effective September 22?📊 Example of Saving 🩺 So, What’s the Bottom Line?🏦 Industry Responses 🔮 What’s in it for you FAQs on GST Removed on Insurance Premiums:

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GST Removed on Insurance Premiums: Health & Life Policies Get Cheaper from September 22, 2025

✅ What Changes Effective September 22?

• Previously: Insurance premiums included 18% GST which meant higher annual costs for insurance.

• Currently: GST is removed so policyholders will only pay the base premium.

• What’s That Mean: Households and businesses can save thousands of rupees per year.

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📊 Example of Saving

• Health Insurance Premium: ₹25,000

• Previously: ₹29,500 (with 18% GST)

• Now: ₹25,000 (with GST removed)

• Life Insurance Premium: ₹50,000

• Previously: ₹59,000 (with 18% GST)

• Now: ₹50,000

👉 If a family has multiple policies, their savings could range from ₹10,000–₹20,000 per year.

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🩺 So, What’s the Bottom Line?

• Will increase health and life insurance coverage.

• Lessened financial stress for middle-class families.

• Supports the Governments aims for universal coverage.

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🏦 Industry Responses

• Insurance Companies: Believe additional purchasers will follow this relief measure.

• Current policyholders: Hopeful that the GST eliminated will make premiums more affordable particularly amid rising medical costs.

• Economists: Expect increased insurance penetration in rural and urban areas.

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🔮 What’s in it for you

– If you’ve been putting off buying a policy, September 22 will be the best time to purchase insurance.

– Existing policyholders will have their renewal premiums decrease automatically.

– More money saved equals a better option to increase your insurance cover.

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FAQs on GST Removed on Insurance Premiums:

Q1: When will GST be removed on insurance?

A1: From September 22, 2025.

Q2: How much cheaper will health insurance be?

A2: Premiums will drop by 18% since GST is fully removed.

Q3: Will this apply to new and existing policies?

A3: Yes, GST-free purchase applies to both new purchases and renewals.