September 2025 Insurance News Update

From 22 September 2025 GST on all individual health and life insurance policies will be reduced from 18 to 0 under the GST 20 reforms making insurance more affordable boosting penetration and improving healthcare access alongside lower GST on medicines and medical equipment

Summary

The 56th GST Council has approved a major reform under GST 2.0, exempting all individual health and life insurance policies from 18% GST starting 22 September 2025. The exemption covers term life, ULIPs, endowment plans, family floater and senior citizen health policies, as well as reinsurance. This move will reduce premium costs for policyholders, improve affordability, and drive wider insurance adoption. Alongside this, GST on medicines has been cut to 5%, 36 life-saving drugs have been fully exempted, and GST on medical equipment has been reduced, collectively easing healthcare expenses and strengthening financial protection.