US Edition
New GST Rates: Key Changes Announced; 0% GST on Individual Life Insurance, Health Policies – What FM Sitharaman Said
GST exemption eliminates 18% tax on individual life and health insurance premiums, potentially reducing policy costs by 15% and boosting insurance access nationwide, experts say.
- On Wednesday, Union Finance Minister Nirmala Sitharaman announced individual life and health insurance policies will be fully exempt from GST, effective nationwide from September 22.
- Against the backdrop of GST slab rationalisation, West Bengal Chief Minister Mamata Banerjee and the Trinamool Congress pressed for a waiver amid the GST Council's cut from four slabs to two.
- Since July 2017, GST at 18% was levied on premiums; Hanut Mehta, CEO and Co-Founder of BimaPay Finsure, said policyholders will now pay premiums lighter by 18%, with a Rs 20,000 policy previously attracting Rs 3,600 GST.
- Markets reacted with sharp gains in insurers including Star Health and Allied Insurance Company, which surged over 9%, while Union Finance Minister Nirmala Sitharaman urged insurers to pass on the GST reduction.
- The change forms part of a wider GST rationalisation that moved daily-use items and 33 life-saving medicines to nil GST, aligning with the Insurance for All by 2047 vision.
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No GST on life insurance, health insurance - Here's how much you will save on your premium
All individual health insurance policies, including family floater policies and policies for senior citizens and reinsurance thereof, will also be exempt from GST, she said. Announcing the outcome of the 56th GST Council meeting, Finance Minister Nirmala Sitharaman said all individual life insurance policies, whether term life, ULIP or endowment policies and subsequent reinsurance are exempt from GST. Since its inception in July 2017, a GST rate…
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GST Rate Cut on Insurances: No GST on Life and Health Insurance Premiums From September 22; Check How It Will Impact Your Policy Costs
In a significant development for policyholders, GST on individual health and life insurance premiums, which currently stands at 18 per cent, has been reduced to nil in the 56th GST Council meeting, and will come into effect starting September 22. GST Rate Cut on Insurances: No GST on Life and Health Insurance Premiums From September 22; Check How It Will Impact Your Policy Costs.
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