Overview

• CBIC FAQs confirm that premiums for individual life and health policies will be exempt from the earlier 18% GST starting September 22.
• The exemption does not cover group or corporate insurance, so employer-provided policies remain taxable under GST.
• Reinsurance linked to individual life and health policies will be GST‑exempt, but insurers must reverse input tax credit on commissions, brokerage and administrative services under Section 17(2) of the CGST Act.
• Analysts estimate insurers may lift tariffs by about 3–5% to offset lost credits, with customers still seeing an estimated 12–15% lower outgo due to the GST waiver.
• dia India Assurance says it will pass the full GST benefit to policyholders and retain intermediary commissions, while industry peers assess pricing and product changes to manage margin pressure.