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India Cuts 18% GST on Health & Life Insurance
11 Feb
Summary
- GST exemption on individual life and health insurance premiums is confirmed.
- Insurers confirmed that premiums did not increase post-GST relief.
- Government monitors to ensure GST benefits reach policyholders.
As of February 2026, policyholders in India are benefiting from a Goods and Services Tax (GST) exemption on individual life and health insurance premiums. The GST Council's recommendation, implemented in September 2025, eliminated the 18% cess, directly reducing premium costs and encouraging wider insurance adoption.
The Indian government has confirmed that insurance entities have not raised premiums following this tax relief. This assurance was provided in written responses during the ongoing Budget Session of Parliament. The Insurance Regulatory and Development Authority of India (IRDAI) has been actively monitoring premiums for new and renewed policies to ensure the GST benefits are fully passed on to consumers.
In a separate query, the Minister of Finance addressed concerns regarding GST on educational materials. However, printed books, including Braille books, remain exempt from GST, as per the recommendations of the GST Council. This ensures continued access to learning resources without additional tax burdens.
