Quick Summary
The Goods and Services Tax (GST) Council’s decision to exempt certain health insurance policies from GST, effective September 22, 2025, has brought relief to policyholders. Previously, health insurance premiums were taxed at 18%, increasing costs for individuals and businesses. Exempted Policies
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The GST exemption for health insurance policies is effective from September 22, 2025.
Yes, individual health insurance policies covering individuals or families, including retail health plans, are exempt from GST.
Policies under government-sponsored schemes like Ayushman Bharat, PMJAY, or state-level health programs are fully exempt from GST.
No, group health insurance policies provided by companies with a turnover exceeding ₹20 crore remain taxable at 18% GST.
Renewals or premiums paid before the effective date of September 22, 2025, are still taxed at 18% GST, and no refunds are applicable.
Top-up plans are generally taxable unless they are explicitly linked to an exempt base health insurance policy.
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