India's GST Council has granted an exemption on individual life and health insurance premiums, removing the 18% GST. The decision, announced in a written reply on 5 February 2026, covers all individual policies including family floater plans. IRDAI confirmed that insurers have passed the benefit to policyholders without raising premiums.
On 3 September 2025, during its 56th meeting, the GST Council recommended granting the exemption.
The 18% GST is removed from these premiums.
All individual life insurance policies and individual health insurance policies, including family floater plans and reinsurance, are covered.
The exemption was announced in a written reply to the Rajya Sabha by Minister Pankaj Chaudhary on 5 February 2026.
IRDAI issued a letter dated 7 January 2026 confirming that premium rates were not increased and the GST relief was fully passed on to policyholders.
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