New Delhi, September 4 (Kiran News). The GST Council has given a major relief to policyholders by exempting premiums on individual life and health insurance policies from Goods and Services Tax (GST). The revised rates will take effect from September 22, the first day of Navratri.
Union Finance Minister Nirmala Sitharaman announced the decision after the 56th meeting of the GST Council. She said that all categories of individual life insurance policies, including term life, ULIP, and endowment plans, along with their reinsurance, will now fall under the zero GST bracket. Currently, these attract 18% GST.
The exemption has also been extended to individual health insurance policies, including family floater plans and senior citizen schemes, as well as their reinsurance. Sitharaman said that removing GST on insurance will make premiums more affordable for the common people and help expand insurance coverage across the country.
Apart from insurance, the GST Council also cut tax rates on several essential items. The Finance Minister informed that GST on 33 life-saving medicines used in healthcare has been reduced from 12% to zero. Three important drugs used in the treatment of cancer, rare diseases, and chronic conditions have also been exempted.
In addition, UHT milk, paneer, and all varieties of Indian flatbreads—including roti, chapati, and paratha—will now be free from GST. The revised rates will be implemented nationwide from September 22.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
