Gs 1 – Society
Context
- The 56th GST Council meeting (Sept 2025), chaired by the Union Finance Minister, introduced a key reform under “GST 2.0”.
- Decision: Complete exemption of GST (previously 18%) on individual health and life insurance premiums, effective September 22, 2025.
Key Features of the Reform
- Coverage:
- Exemption applies to all individual health policies (including family floaters, senior citizen plans).
- Applies to all individual life insurance policies (term, ULIP, endowment).
- Exclusions:
- Group insurance policies (e.g., employer-provided) will continue to attract GST.
- Policy Objective:
- Enhance affordability of insurance.
- Support vision of “Insurance for All by 2047”.
- Reduce financial vulnerability of households.