No GST On Health & Term Insurance From September 22: Major Relief For Policyholders

Starting September 22, policyholders will get a big financial relief as the government has decided to remove Goods and Services Tax (GST) on health and term insurance premiums. Earlier, a GST of 18% was applicable on these essential insurance products, making them costlier for individuals and families. The exemption will reduce the premium burden significantly, encouraging more people to buy health and term insurance for financial protection. This move is expected to boost insurance penetration in India, provide affordable risk coverage, and make essential policies accessible to a wider population. Experts believe that the step will not only benefit existing policyholders but also attract new buyers who were hesitant due to high costs, thereby strengthening the country’s overall social security framework.