Check applicable Goods and Services Tax (GST) treatment for your life, health, motor, and commercial insurance premiums based on policy category and effective regulatory norms.
Choose your policy category to view the applicable GST treatment and calculate your total payable amount or base premium breakdown.
*These calculators provide educational estimates only and do not constitute insurance quotations, underwriting decisions, financial advice or guarantees of policy benefits. Please refer to your official insurer invoice for definitive billing details.
Under the Indian Goods and Services Tax (GST) framework, insurance services are categorized under Service Accounting Code (SAC 9971). Effective 22 September 2025, government notifications have exempted individual life and individual health insurance policies from GST. Understanding applicable classifications helps consumers and businesses plan premium outlays transparently.
| Policy Category | GST Rate (from 22 Sept 2025) | Regulatory & Applicable Treatment |
|---|---|---|
| Individual Term Life Insurance | 0% (Exempt) | Individual life insurance policies are GST-exempt effective 22 September 2025. |
| Individual Health Insurance (Mediclaim & Floater) | 0% (Exempt) | Individual health policies, including family floater covers, are GST-exempt effective 22 September 2025. |
| Individual Endowment / Money Back / ULIP | 0% (Exempt) | Classified under individual life insurance; exempt from GST effective 22 September 2025. The previous 4.5% (Year 1) / 2.25% (Renewals) rates are no longer applicable. |
| Group Life Insurance | 18% | Group insurance policies do not fall under the individual exemption; standard 18% GST applies. |
| Group Health Insurance | 18% | Corporate and group health policies continue to attract standard 18% GST. |
| Motor Insurance (Own Damage & Third-Party) | 18% | Standard 18% GST applies to private cars, two-wheelers, and commercial vehicles. |
| Commercial Fire, Marine & Liability | 18% | Standard 18% GST applies. Input Tax Credit (ITC) eligibility depends on business use and applicable GST Act provisions. |
| Commercial / Business Insurance | 18% generally | Corporate and commercial policies do not qualify for the individual life/health GST exemption. |
GST treatment relates to the tax charged on the invoice at the time of premium payment. In contrast, Income Tax deductions (such as Section 80C for life insurance and Section 80D for medical insurance) are governed separately under the Income Tax Act, 1961. Availability of deductions depends on individual eligibility, statutory ceilings, and the taxpayer's chosen tax regime (Old Regime vs. New Tax Regime under Section 115BAC).
Transparent parameter-based policy guidance from qualified Insurance Sales Persons (ISPs) under IRDAI IMF regulations.