 "life insurance, insurance")
The 56th Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, has exempted all individual life and health insurance policies from GST, removing the earlier 18 per cent levy. The exemption will apply from September 22, 2025.
The move makes insurance more affordable, especially for first-time buyers. “It lowers the entry barrier for millions who remain uninsured. This is a behavioural nudge that will encourage families to prioritise protection,” says Ankit Agarwal, founder and chief executive officer, InsuranceDekho.
However, the benefit for policyholders may not equal the full 18 per cent. “Insurers now face the loss of
