Before the reform, India's GST regime taxed most insurance premiums—especially health and life insurance—at 18%, adding a significant cost burden to policyholders The Economic TimesClearTax.
Different insurance products had varied GST rates:
The GST Council has slashed GST on health and life insurance to 0%, effective September 22, 2025.
This is one of the most asked questions by policyholders.
Expert Advice: Do not delay payments beyond your due date just to save GST. Instead, plan future renewals and new policies post-September 22 to gain the benefit. (Source: Economic Times)
Insurance industry bodies have urged the GST Council to extend the zero-GST treatment to agents’ commissions, currently taxed at 18%, arguing that continued taxation there hurts their bottom line due to loss of ITC
Q1. When will 0% GST on insurance start?
๐ From September 22, 2025.
Q2. Does this apply to all insurance policies?
๐ Only individual health and life insurance policies. Other policies (like motor insurance) may still attract GST.
Q3. Will I get a refund for GST paid before Sept 22?
๐ No, refunds are not applicable.
Q4. Should I delay paying my premium to save GST?
๐ Not advisable. If your due date is before Sept 22, delaying can lapse your policy. If your renewal is on or after Sept 22, you automatically get the benefit.
Q5. What about insurance agents’ commissions?
๐ Currently, commissions still attract 18% GST, though industry bodies are requesting a cut.
Q6. Will I get a GST refund if I already paid my insurance premium in advance?
๐ No. Once you have paid your insurance premium in advance, including GST, no refund of the tax is allowed.
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