New Delhi, Feb. 4 -- The government has exempted GST on all individual life and health insurance policies, including family floater plans, following a recommendation of the GST Council, Minister of State for Finance Pankaj Chaudhary informed in a written reply to the Rajya Sabha.

GST Council Decision on Insurance

The Minister said that GST rates and exemptions are prescribed based on recommendations of the GST Council. In its 56th meeting held on September 3, 2025, the Council recommended granting GST exemption on individual life insurance policies and individual health insurance policies, including their reinsurance.

Impact on Premium Costs and Coverage

The removal of the 18 percent GST on insurance premiums is expected to significan...