New Delhi, Sept. 6 -- The Goods and Services Tax (GST) Council, after its 56th meeting on 4 September 2025, announced a GST exemption on all health and life insurance premiums as part of the central government's indirect tax rationalisation move. The industry has welcomed this step even though the risk of a higher premium looms due to the losses imposed by the input tax credit (ITC) on companies.

This development brought much-awaited tax relief in the insurance sector, cutting the GST on premiums from 18% to 0% (nil), effective as per the new GST norms that will take effect on 22 September 2025.

Mint reported earlier that the central government aims to directly aid consumers by reducing insurance product costs through this move. However...