{"id":53846,"date":"2026-06-30T17:21:37","date_gmt":"2026-06-30T11:51:37","guid":{"rendered":"https:\/\/www.tatacapital.com\/blog\/?p=53846"},"modified":"2026-06-30T17:21:48","modified_gmt":"2026-06-30T11:51:48","slug":"gst-on-health-insurance-premium","status":"publish","type":"post","link":"https:\/\/www.tatacapital.com\/blog\/insurance\/gst-on-health-insurance-premium\/","title":{"rendered":"GST on health insurance premiums: Rate &amp; how to calculate"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p><em>The Goods and Services Tax (GST) for health insurance is an indirect tax levied on your medical insurance premium. Prior to 22 September, 2025, GST was charged at 18% on health insurance premiums, making policies costlier. However, following recent tax reforms, individual health policies and family floater plans are fully exempt, meaning 0% GST is charged on them, whereas employer-issued group\/corporate policies still attract an 18% GST. The additional taxes are added to the total premium your employer pays for the health policies.<\/em><strong><\/strong><\/p>\n\n\n\n<p>GST on health insurance premiums is exempt for individual policies, while group and corporate health insurance plans continue to attract 18% GST.<\/p>\n\n\n\n<p>If you are a new or existing health insurance policyholder, you must know about the recent developments related to Goods and Services Tax (GST) in <a href=\"https:\/\/www.tatacapital.com\/blog\/insurance\/health-insurance-claim-process-simplifying-coverage\/\">health insurance<\/a>. Since 22 September 2025, individual health insurance policies in India are GST-free. This means no GST is charged on the premium. However, <a href=\"https:\/\/www.tatacapital.com\/blog\/insurance\/group-health-insurance-meaning-how-it-works-benefits\/\">group health insurance<\/a> plans provided by corporate entities or employers continue to attract 18% GST. This change has made health insurance more affordable for many individuals and families. Through this article, you can learn about the current applicable GST on health insurance premiums in India, how to calculate the tax, and much more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is GST on health insurance?<\/strong><\/h2>\n\n\n\n<p>GST on health insurance premiums is an indirect tax levied by the government on the insurance service (HSN 997133) provided by insurers. For several years, an 18% GST applied to health insurance premiums, which increased the overall cost of coverage. However, GST rules were changed in September 2025, and the tax treatment now depends on the type of health insurance policy you have. Read on to learn about the revised health insurance GST rate.<\/p>\n\n\n\n<p>Also Read &#8211; <a href=\"https:\/\/www.tatacapital.com\/blog\/loan-on-property\/gst-on-rental-income\/\">GST on rent in India<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the current GST rate on health insurance (2025 update)?<\/strong><\/h2>\n\n\n\n<p>According to the 2025 update, the type of policy determines how much GST is charged on health insurance premiums. No GST applies to individual health insurance plans. This includes family floater and senior citizen policies. However, there is an 18% GST charge on group or corporate health insurance plans.<\/p>\n\n\n\n<p>The following table explains the health insurance GST rate as per the 2025 update:<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Type of health insurance policy<\/strong><\/td><td><strong>GST rate<\/strong><\/td><\/tr><tr><td>Individual health insurance<\/td><td>Nil (Exempt)<\/td><\/tr><tr><td>Family floater health insurance<\/td><td>Nil (Exempt)<\/td><\/tr><tr><td>Senior citizen health insurance<\/td><td>Nil (Exempt)<\/td><\/tr><tr><td>Group\/corporate health insurance<\/td><td>18%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the GST on individual health insurance?<\/strong><\/h2>\n\n\n\n<p>The government of India amended the GST rules on <a href=\"https:\/\/www.tatacapital.com\/insurance\/health-insurance.html\">health insurance<\/a> in September 2025. Since then, individual health insurance policies have been GST-exempt. This exemption includes individual plans, family floater policies, senior citizen health insurance, and individual top-up or super top-up plans. It applies to premiums paid on or after this date. It also includes renewals and reinstated policies. Moreover, reinsurance services related to these exempt individual health insurance policies are also GST-free.<\/p>\n\n\n\n<p>Read More &#8211; <a href=\"https:\/\/www.tatacapital.com\/blog\/generic\/input-tax-credit-itc\/\">Input Tax Credit (ITC) under GST<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is the GST on group\/corporate health insurance?<\/strong><\/h3>\n\n\n\n<p>Despite the 2025 update, group and corporate health insurance policies provided by employers continue to attract GST at 18%. This means GST is added to the premium paid for employee health coverage. It is vital for businesses to note that Input Tax Credit (ITC) on employee health insurance is generally blocked under Section 17(5)(b) of the Central Goods and Services Tax (CGST) Act. However, you may get ITC if providing such health cover is mandatory under any applicable law.<\/p>\n\n\n\n<p>Read More &#8211; <a href=\"https:\/\/www.tatacapital.com\/blog\/insurance\/which-is-recommended-individual-or-corporate-health-insurance\/\">Which is recommended, individual or corporate health insurance<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The September 2025 GST exemption: What changed?<\/strong><\/h2>\n\n\n\n<p>In September 2025, a major change came into effect when the GST Council reduced GST on individual health and life insurance from 18% to nil. The decision was made at the 56th GST Council meeting on 3 September 2025, and came into effect from 22 September 2025 through Notification No. 16\/2025-CT(R).<\/p>\n\n\n\n<p>The key changes include:<\/p>\n\n\n\n<ul>\n<li>Removing GST from individual health insurance premiums<\/li>\n\n\n\n<li>Making individual life insurance premiums GST-free<\/li>\n<\/ul>\n\n\n\n<p>The amended GST for health insurance approach focused on supporting the \u201cInsurance for All by 2047\u201d vision. As a result, premiums are now lower because of no GST addition.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to calculate GST on a health insurance premium?<\/strong><\/h2>\n\n\n\n<p>The GST is nil for individual health insurance policies issued, renewed, or reinstated on or after 22 September 2025. This means that you only pay the base premium amount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The formula is:<\/strong><\/h3>\n\n\n\n<p>Base premium = Payable amount<\/p>\n\n\n\n<p>For example, if an individual policy\u2019s premium is Rs. 15,000, you will pay Rs. 15,000 to the insurance company.<\/p>\n\n\n\n<p>For group health insurance plans, add GST at 18% to the premium amount.<\/p>\n\n\n\n<p><strong>The formula is:<\/strong><\/p>\n\n\n\n<p>Total payable = Premium + 18% of the premium as GST<\/p>\n\n\n\n<p>So, if the premium for a group health insurance plan is Rs. 20,000, you will pay Rs. 3,600 (20,000 X 18%) as GST.<\/p>\n\n\n\n<p>So, the total payable will be Rs. 23,600 (20,000 + 3,600).<\/p>\n\n\n\n<p>Read More &#8211; <a href=\"https:\/\/www.tatacapital.com\/blog\/loan-for-home\/how-to-calculate-gst-on-home-loan\/\">How to calculate GST on a home loan<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is a GST calculation example?<\/strong><\/h3>\n\n\n\n<p>As clarified above, GST calculation depends on the type of health insurance policy. In the following example, the premium for both individual and group health insurance policies is the same, but GST applicability is different. As a result, the total payable amount is also different.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Policy type<\/strong><\/td><td><strong>Premium<\/strong><\/td><td><strong>GST<\/strong><\/td><td><strong>Total payable<\/strong><\/td><\/tr><tr><td>Individual health insurance<\/td><td>Rs. 50,000<\/td><td>Nil<\/td><td>Rs. 50,000<\/td><\/tr><tr><td>Group health insurance<\/td><td>Rs. 50,000<\/td><td>Rs. 9,000<\/td><td>Rs. 59,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Which premiums are exempt? Transition and timing rules<\/strong><\/h2>\n\n\n\n<p>The applicability of GST on health insurance premiums depends on the timing rules specified under Section 14 of the CGST Act. These rules focus on when the supply is made, when the invoice is issued, and when the payment is received. Therefore, the date of premium payment is vital in determining whether GST applies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Individual health premiums paid on or after 22 September 2025:<\/strong><\/h3>\n\n\n\n<ul>\n<li>No GST applies to new policy premiums.<\/li>\n\n\n\n<li>No GST applies to renewal premiums.<\/li>\n\n\n\n<li>Installment premiums are GST-exempt.<\/li>\n\n\n\n<li>No GST applies to premiums paid for reinstated policies.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Individual health insurance premiums paid before 22 September 2025:<\/strong><\/h3>\n\n\n\n<ul>\n<li>GST applies at 18%<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What are the GST exemption and Section 80D tax benefits?<\/strong><\/h2>\n\n\n\n<p>The GST exemption on individual health insurance and the tax deduction available under Section 80D are two separate benefits. You can continue to claim Section 80D deductions on eligible health insurance premiums as long as they are available in your tax regime and within prescribed limits. On the other hand, since no GST is charged on individual health insurance premiums paid on or after 22 September 2025, the amount you pay and potentially claim as a deduction is lower than before.<\/p>\n\n\n\n<p>Note that tax rules vary based on your situation. You must consult a qualified tax advisor or financial professional before making tax-related decisions.<\/p>\n\n\n\n<p>Read More &#8211; <a href=\"https:\/\/www.tatacapital.com\/blog\/personal-use-loan\/what-is-gst-on-personal-loan-impact-working-and-more\/\">What Is GST on Personal Loan<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the impact of the GST exemption on policyholders?<\/strong><\/h2>\n\n\n\n<p>Individual health insurance has become more affordable with GST exemption, as it reduces the total premium payable on new policies and renewals. Since there is no GST in health insurance, individuals and families can save money while maintaining the same level of coverage. However, group and corporate health insurance policies continue to attract 18% GST. Thus, there is no change for employer-sponsored plans.<\/p>\n\n\n\n<p>If you receive an insurance renewal notice after 22 September 2025, make sure you review it carefully to ensure the GST exemption has been applied correctly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>GST for health insurance is an indirect tax that the government charges for the services an insurance company provides to you. However, its applicability has changed significantly after the GST Council meeting held on 3 September 2025. Earlier, insurance premiums attracted an 18% GST. But, effective 22 September 2025, GST charges depend on the type of policy. Individual and family floater insurance plans are GST-exempt, whereas 18% GST still applies to group\/corporate health insurance plans. You must always check the latest GST rates and policy details through official GST notifications, government portals, or your insurer, as these can change from time to time.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and Services Tax (GST) for health insurance is an indirect tax levied on your medical insurance premium. Prior to 22 September, 2025, GST was charged at 18% on health insurance premiums, making policies costlier. However, following recent tax reforms, individual health policies and family floater plans are fully exempt, meaning 0% GST is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":53847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[33],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GST on health insurance: Rate, exemption &amp; calculation<\/title>\n<meta name=\"description\" content=\"Learn how GST affects health insurance premiums, the applicable GST rate, and how it influences the overall cost of your health insurance policy in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GST on health insurance: Rate, exemption &amp; 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