Short answer
From 22-09-2025, individual life and individual health premiums, family floaters included, carry no GST. Group policies stay at 18%. What matters is the date the premium is paid, not the date it was due.
Rates by kind of policy
| Policy | GST | How sure |
|---|---|---|
| Individual life, term included | 0% if paid on or after 22-09-2025 | Official: Department of Financial Services |
| Individual health, family floater included | 0% if paid on or after 22-09-2025 | Official: Department of Financial Services |
| Group term, group credit life, employer group life and health | 18% | Official: Department of Financial Services |
| Motor | 18% | Single source: search summaries only, which also match a live product's total. No notification read. |
| A goods vehicle, third-party only | 5% reported from 22-09-2025 | Unverified: search summaries only. Check the policy schedule. |
| A goods vehicle, with own damage | 18% on the whole premium, third-party part included | What most insurer and broker sources show. No notification read. Check the policy schedule. |
| Home, shop, travel, accident, marine | Read it from the schedule | Not verified here. GST on individual personal accident cover was not confirmed. |
The date of payment decides
The Department of Financial Services says the rate is the one on the date the premium is paid. A premium due before 22-09-2025 but paid on or after that date carries no GST. Each instalment goes by its own payment date.
For a premium paid in advance, the same page points to Section 14 of the CGST Act: of the service, the invoice and the payment, if two fall on or after 22-09-2025, the exemption applies.
What it does to a premium
| Policy | Before GST | GST | Total |
|---|---|---|---|
| Individual life, paid 01-10-2025 | ₹25,000 | ₹0 | ₹25,000 |
| Individual health, paid 01-10-2025 | ₹25,000 | ₹0 | ₹25,000 |
| Group policy | ₹25,000 | ₹4,500 | ₹29,500 |
| Motor | ₹25,000 | ₹4,500 | ₹29,500 |
These figures come from the same function as the GST on premium tool and the calculator in the app.
Refunds, input credit and your commission
Press reports say GST paid before 22-09-2025 is not refunded. That is not stated on the DFS page, so treat it as reported, not confirmed. The CBIC FAQ, as reported by The Week, says insurers lose input tax credit on commission for these policies. An agent's own GST position on commission was not researched for this guide; ask your tax adviser.
Common questions
Is there GST on term insurance now?
Not on an individual term policy when the premium is paid on or after 22-09-2025. Group term stays at 18%.
Is there GST on a family floater health policy?
No, for premiums paid on or after 22-09-2025. The exemption covers individual health policies, family floaters included.
A premium was due on 21-09-2025 and paid on 22-09-2025. Is GST charged?
No. The date of payment decides, so it carries no GST.
What is the GST on car insurance?
18% on the premium. Motor is not part of the life and health exemption. The 18% comes from search summaries, not a notification, so check the policy schedule.
Sources
- Department of Financial Services, Ministry of Finance: exemption of GST on individual life and health policies Official. Opened again on 08-11-2026.
- Free Press Journal on GST coming off premiums Press report, and the only source for "no refund": it is not on the DFS page.
- The Week (PTI) on the CBIC FAQ about GST on insurance, 16-09-2025 Press report of the CBIC FAQ. The FAQ itself was not read.
- Shriram Finance on GST for goods vehicle insurance Search summary only; the page could not be opened and no CBIC notification was read. Treat as unverified.
- PB Partners on motor GST after 22-09-2025 Search summary only; the page could not be opened. Treat as unverified.
Last checked 08-11-2026. General information for agents, not legal, tax or financial advice. Rules change: the insurer's documents and the regulator's current text decide.
