Archive · 21 Aug 2025
GST Removal on Insurance Welcomed by Insurers
The government is considering removing the 18% tax (GST) on health and life insurance.
Insurance companies think this is a great idea because it will make insurance cheaper for many people, especially those who aren't rich.
They hope this will help more people get insurance and be ready for anything that happens.
A group of ministers suggested this, and now the GST Council will decide if it becomes official.
GoM suggests scrapping GST on individual health and life insurance policies.
Insurers welcome the move, citing increased affordability for the middle class.
Currently, a 18% GST is levied on health and life insurance premiums.
The change aims to support the 'Insurance for All' initiative by 2047.
GST Council will make the final decision on the GoM's suggestion.
- Who
- Group of Ministers (GoM), Insurers, GST Council
- What
- Suggestion to exempt individual health and life insurance policies from GST.
- When
- Final decision expected from the GST Council.
- Where
- India
- Why
- To make insurance more affordable and accessible, supporting the 'Insurance for All' initiative.
Insurance Companies
Government
Impact on Insurers
Insurance Companies
Welcoming the proposed GST exemption.
Government
Concerned about structural tax reforms and input tax credit for insurance companies.
- Current GST Rate
- 18%
- Proposed Change
- Exemption of GST on individual insurance
- Impact
- Potentially lower premiums, increased insurance accessibility
- Decision Maker
- GST Council
- Insurers' Stance
- Supportive
Sources
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