GST TDS applicability

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Government companies are required to deduct GST TDS at 2% on payments for group health or life insurance premiums to private insurers if the contract value exceeds Rs 2.5 lakh. The deducted amount must be deposited with the government and reported in GSTR-7.

Vilash

Vilash (Querist)

16 February 2026 Whether a Government company is required to deduct GST TDS on payment of premium towards employees Group Term Life Insurance and Group Health Insurance policies procured from a private insurance company ?

Vilash

Vilash (Querist)

16 February 2026 Respected Sir/Madam,

Kindly assist at the earliest pls.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

17 February 2026 Government companies must deduct 2% GST TDS on Group Insurance premiums if the contract exceeds ₹2.5 Lakh, as these policies remain taxable at 18% despite the 2025 exemptions for individual policies.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

17 February 2026 Since you are a Government company procuring Group policies from a private insurer, you must deduct 2% GST TDS from the premium payment, provided the total premium amount (before taxes) for that specific contract is more than ₹2,50,000. You must then remit this to the government and file Form GSTR-7.

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