No GST on individual health, life insurance premiums from September
Big update: Starting September 16, 2025, you won't have to pay GST on any individual life or health insurance premiums.
The GST Council, led by Finance Minister Nirmala Sitharaman, just scrapped the 18% tax that's been around since 2017.
This covers term plans, ULIPs, endowment policies—even family and senior citizen health covers.
Group policies still taxed
Heads up—this tax break is only for policies you buy for yourself or your family.
If your employer gets a group plan for staff (think office health or life insurance), those will still be taxed as usual.
So it's a win mainly for people buying their own coverage.
What this means for you
Paying less tax means lower premiums right away, making insurance more affordable for millions.
The government hopes this move helps more people get insured without messing with how work-based plans are taxed.
If you're getting a new policy or renewing after September 22, the savings kick in automatically.