Question: I'm paying premiums for my individual health insurance policy and my life insurance policy. Is GST charged on top of my premium amount, and if so, at what rate?
Answer: No GST is charged on individual life insurance policies or individual/family floater health insurance policies (including reinsurance) - these are now fully exempt from GST. This is a change from the earlier position where such premiums attracted 18% GST.

Supporting evidence:
title: gstcouncil.gov.in/press_release_press_information_bureau_0.pdf
quote: Exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country.
Exemption of GST on all individual health insurance policies (including family floater policies and policies for senior citizens) and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country
context: a strategic, principled, and citizen-centric evolution of a landmark tax framework, which will enhance the quality of life of every last citizen
GST Council approves reforms with a multi-sectoral and multi-thematic focus on improving the lives of all citizens and ensuring ease of doing business for all, including small traders and businessmen
GST Council approves rate rationalisation with a focus on Commonman, Labour-intensive Industries, Farmers and Agriculture, Health, Key Drivers of the economy
Exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country.
Exemption of GST on all individual health insurance policies (including family floater policies and policies for senior citizens) and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country
Rationalisation of the current 4-tiered tax rate structure into a citizenfriendly 'Simple Tax' - a 2 rate structure with a Standard Rate of 18% and a Merit Rate of 5%; a special de-merit rate of 40% for a select few goods and services
Reduction of GST from 18% OR 12% to 5% on a host of common man items such as, hair oil, toilet soap bars, shampoos, toothbrushes, toothpaste, Bicycles, Tableware, kitchenware, other household articles, Reduction of GST from 5% to NIL on Ultra-High Temperature (UHT) milk, Prepackaged and labelled chena or paneer; All the Indian Breads will see NIL rates (Chapati or roti, paratha, parotta, etc)

Recommendations of the 56th Meeting of the GST Council held at New Delhi, today

Reduction of GST from 12% OR 18% to 5% on almost all of the food items such as packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, Butter, Ghee, etc.
Reduction of GST from 28% to 18% on Air-conditioning machines, TVs~32 inch (all TVs now at 18%), Dishwashing machines, Small cars, Motorcycles equal to or less than 350 CC
Reduction of GST from 12% to 5% on agricultural goods, such as tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, harvesting or threshing machinery, including straw or fodder balers, grass or hay mowers, composting machines etc
Reduction of GST from 12% to 5% on labour intensive goods such as Handicrafts, Marble and travertine blocks, granite blocks, and Intermediate leather
title: financialservices.gov.in/Insurance-FAQs.pdf
quote: GST rate on all Individual Life Insurance and Individual Health Insurance policies, including reinsurance of the same, has been reduced from 18% to zero and it has come into effect on 22nd September 2025
context: Q1: What is the recent change to GST on insurance policies and when will it be implemented?

Ans: GST rate on all Individual Life Insurance and Individual Health Insurance policies, including reinsurance of the same, has been reduced from 18% to zero and it has come into effect on 22nd September 2025.

Q2: Which insurance policies are covered under the ambit of the GST exemption?

Ans: All Individual Life Insurance and Individual Health Insurance policies are covered under the ambit of GST exemption.

Q3: Which policies are covered under the ambit of the GST exemption recommended on health insurance?

Ans: The policies covered under the exemption are all individual health insurance policies (including family floater plans).

Q4: Whether GST will be applicable on Group Insurance policies?

Ans: Yes, the exemption is explicitly for all INDIVIDUAL life and health insurance policies and the 18% GST rate will be applicable on Group Insurance policies.

Q5: Whether GST will be applicable on employer-sponsored insurance policies?

Ans: The employer-sponsored group health insurance or a group life policy will continue to be taxed at 18% GST rate.

Q 8. Will the health insurance policies with embedded covers such as travel and personal accident cover be eligible for GST exemption?

Ans: In case of individual health insurance policy with additional features like travel cover and personal accident cover sold as a single product, the entire product sold for a single price, would be exempted from the GST ambit.

Q 9. What would be the treatment of policies where insurance premium is collected in instalments (i.e., other than single premium)?

Ans: GST rate will be applicable as on date of instalment premium payment. If instalment premium is paid before September 22, 2025, 18% GST rate will be applicable and if instalment premium is paid on or after September 22, 2025, such premium collected will be exempt from GST.

Q 10: Whether GST will be applicable on Group credit life and Group term policies?

Ans: As per notification No. 16/2025 Central Tax (Rate) dated 17.09.2025, w.e.f., 22.09.2025, the exemption is explicitly for services of life insurance business provided by an insurer to the insured, where the insured is not a group. Group credit life and Group term policies would continue attracting 18% GST.

Q 11: Whether the policies issued to NRI customers on or after September 22, 2025, will be treated as export (Zero rated) or exempt?