Archive · 28 Jun 2025
GST Impact: Insurance Premiums in the Indian Market
India has used the Goods and Services Tax (GST) for eight years.
Most insurance policies have an 18% GST, which makes them more expensive.
However, some life insurance and government health plans have special exceptions and don't have to pay the full amount of GST.
The high GST can affect how much people pay for their insurance.
India's Goods and Services Tax (GST) has been in effect for eight years.
The standard GST rate of 18% is applied to most insurance policies.
This GST significantly increases the cost of insurance premiums.
Life insurance policies have partial exemptions from GST.
Health insurance for government schemes is also exempt from GST.
- Who
- Consumers who purchase insurance policies.
- What
- The application of GST on insurance premiums in India.
- When
- The GST regime has been in effect for eight years.
- Where
- India
- Why
- To understand the financial impact of GST on insurance costs.
- GST Rate
- 18% (standard)
- GST Application
- Most insurance policies
- Exemptions
- Partial for life insurance; for government health schemes
- Impact
- Increases the cost of insurance premiums