NEW GST RATES ON LIFE INSURANCE
GST Rate Changes 2025: Check full list of items with revised rates effective from Navratri, September 22
GST Rates List 2025: The GST Council has announced tax slab revisions impacting almost all goods and services. After the rationalisation of taxes, several items are likely to witness a tax reduction. The new GST rates will come into effect from September 22. However, gutkha, tobacco, and cigarettes are exceptions.
GST removed from life, health insurance but how much will you gain?
No Goods and Services Tax means no additional cost on premiums. But the savings you see will hinge on how companies reprice policies.
GST overhaul a people's reform, touches every family: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman calls GST overhaul a 'people's reform'. Rate rationalization will benefit families and boost the economy. Prices of nearly 400 products will decrease from September 22. Premium on health and life insurance will be tax-free. The GST slab structure will change to 5% and 18%. Daily food items will fall under the 5% slab.
GST reforms to set stage for next investment cycle, provide tailwind for growth in coming quarters and years: Sanjiv Bajaj
Sanjiv Bajaj hailed the government’s GST rate cuts as the biggest reform since 2017, calling it a major driver for demand, lending, and financial services. He expects festive spending, MSME growth, and housing finance to benefit, alongside expanded insurance coverage due to exemptions.
Pharma sector hails GST cut as a landmark move toward affordable healthcare
GST rates on 33 life-saving drugs have been reduced to zero, while rates on other medicines and diagnostics have been cut to 5%. The industry welcomes the reform as a major relief for patients.
How GST cuts will change what you pay from Sept 22
With GST rates slashed on numerous goods and services, companies are gearing up to revise prices and extend the benefits to consumers by September 22. This involves manufacturers, wholesalers, and retailers coordinating to adjust for products already in distribution with older tax rates. While some sectors anticipate increased demand, others face challenges like managing unsold stock and potential losses.
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GST on health and life insurance premiums reduced to zero: See how it will impact your policy costs
New GST Rates on Life and Health Insurance: The Goods and Services Tax (GST) on health and life insurance premiums will soon be zero. The GST Council approved this change in its recent meeting. This new rule starts on September 22, 2025. While premiums will not have GST, insurers may not get input tax credits. Experts say this could lead to a slight increase in costs.
GST 2.0 is here. How should you tweak your mutual fund portfolio
GST 2.0 is set to revamp India's indirect tax system. Experts suggest domestic-facing sectors will benefit. Sectors like autos, staples, and retail may see better demand. Premium apparel and luxury cars could face pressure. The revised rates will be effective from September 22, 2025. Investors should consider their risk appetite before tweaking their mutual fund portfolio.
HDFC Life shares in focus as revised GST structure to kick in from September 22
HDFC Life shares: The insurer announced adoption of the revised GST structure on all insurance products from September 22, 2025. The company said the GST cut will make policies more affordable, boost demand, and aid long-term growth
State-run insurers likely to roll out zero-tax policies
India's state-run insurers are set to introduce zero-tax individual policies to broaden insurance coverage, following a government decision to exempt individual insurance purchases from GST. While this move aims to lower premiums, the unavailability of input tax credits may initially squeeze insurer profitability. Insurers are exploring cost-cutting measures to mitigate the impact and ensure the benefits reach consumers.
GST on insurance: Planning to delay premium payment after Sept 22 to get rate-cut benefit? Why it may not be a good idea
The Goods and Services Tax (GST) Council has reduced insurance GST rates from 18% to zero. This change applies to policy renewals after September 22, 2025, and new policies. So if you are planning to delay your premium payment after the date, it may not be a good idea.
GST reforms: Life & health insurance to see 0% GST
The GST Council has eliminated the 18% tax on individual life and health insurance policies, aiming to boost affordability and coverage. Finance Minister Nirmala Sitharaman expects companies to pass on the benefits to consumers. This move, effective for all individual policies and reinsurance, seeks to reverse the recent decline in insurance penetration across India.
New GST rates: Is the puzzle over popcorn, paranthas and paneer finally solved?
New GST Rates: The GST Council has approved a new tax structure effective September 22, resolving long-standing confusions on food items. Popcorn, paranthas, and paneer now have simplified rates, with pre-packaged and labelled items taxed at 5%. Online gaming and IPL tickets will face a higher 40% GST.
GST 2.0 FAQs: Which cars just got cheaper & which ones got costlier? From insurance to gold to cigarettes, all key new price info here
The GST Council has approved a significant overhaul of the Goods and Services Tax regime, effective September 22, 2025, by limiting slabs to 5% and 18%. These changes aim to boost domestic spending and mitigate the impact of US tariffs, with rate reductions on various goods and services, including personal use items, medicines, small cars, and bicycles.
GST overhaul lifts new-age stocks PB Fintech, Nykaa, FirstCry
The new regime has abolished tax on individual life and health insurance products sold by companies such as LIC, SBI Life Insurance and ICICI Prudential Life Insurance. This move is likely to boost premiums and customer adoption of such products.
Insurance companies bear the burden of GST exemptions, have to reverse accumulated ITC
Following GST revisions, individual life and health insurers face the burden of reversing Input Tax Credit accumulated until September 21, 2025. While policyholders benefit from premium exemptions starting September 22, insurers must reverse unutilized credits, impacting their finances. Experts suggest a phased reversal or refund mechanism to balance consumer benefits and industry sustainability.
Kerala to see Rs 8,000-10,000 cr annual revenue loss due to GST rate rationalisation: FM Balagopal
Kerala anticipates an annual revenue loss of Rs 8,000 to Rs 10,000 crore due to GST rate cuts, according to Finance Minister K N Balagopal. While supporting the price-reducing cuts, he urged the central government to ensure benefits reach the public.
Not all are winners in India's GST 2.O regime. These stocks are losing already
India’s GST overhaul introduces 5%, 18%, and 40% slabs, boosting consumption and aiding FMCG, auto, and insurance sectors. Coal, luxury goods, casinos, and energy drinks face higher taxes. While ITC and Godfrey Phillips benefit from reduced tax uncertainty, Delta Corp, Nazara, and premium auto firms may see near-term pressure.
Exemption of GST from life and health insurance premium to make products affordable: Insurers
The GST Council's landmark decision to exempt insurance premiums from GST is poised to revolutionize the insurance sector. Insurers hail this move as a game-changer, anticipating increased affordability and wider insurance penetration. This exemption, covering life and health insurance, aims to ease financial burdens and promote health security for citizens, potentially driving a shift towards accessible digital solutions.
GST 2.0: Biggest gainers and losers of the new tax regime
India has announced revised Goods and Services Tax (GST) rates. Finance Minister Nirmala Sitharaman announced GST cuts on many items. The changes will impact good from dairy items to cars. New rates take effect from September 22. Daily use items see lower taxes. Cars, TVs, and cement also get tax cuts. Apparel costing over 2,500 rupees will see a tax increase.
GST rate cuts will improve affordability and give a fillip to consumption: Morgan Stanley
Morgan Stanley anticipates a significant boost in consumption due to the GST structure rationalization, particularly benefiting low-income households. Effective from September 22, the simplified two-rate system will make various goods and services more affordable, coinciding with the festive season.
GST 2.0 explained: When will new GST rate for life, health insurance be applicable?
In a significant move, the GST Council announced on September 3, 2025, that individual life and health insurance premiums will be exempt from GST. The council also reduced GST rates on medicines to a concessional 5%, aiming to lower healthcare costs.
GST relief to boost insurance penetration, ease burden on policyholders: Nilesh Sathe
The government's GST reform has eliminated the 18% tax on insurance premiums, a move expected to boost insurance penetration in India. While policyholders will benefit from lower costs, insurers may face challenges in adjusting premium structures due to the loss of input tax credit, potentially squeezing profit margins, especially on renewal policies.
GST overhaul: Mallikarjun Kharge says wait for 'true GST 2.0' continues, demands compensation for states for 5 more years
The Indian National Congress has for long been advocating for a GST 2.0 that reduces the number of rates, cuts the rates on a large number of items of mass consumption, minimises evasion, mis-classification, and disputes, does away with inverted duty structure, lower tax on output as compared to inputs, eases the compliance burden on MSMEs, and expands GST coverage, Ramesh said on X.
Finally have to follow Rahul Gandhi's advice: Pawan Khera slams Centre on GST reforms after 8 years
Congress leaders Pawan Khera and P Chidambaram have criticized the Centre's next-generation GST reforms, deeming them overdue. They highlight Rahul Gandhi's earlier advocacy for an 18% GST cap, questioning the government's delayed response. The reforms, announced by Finance Minister Nirmala Sitharaman, aim to reduce GST rates, providing relief across various sectors with revised slabs of 5%, 18%, and 40%.
ICICI Pru, LIC, other insurance stocks rise up to 6% after GST council scraps tax on life, health policies
Insurance stocks: GST Council has scraped 18% tax on all individual life and health insurance policies, effective Sept 22, 2025. Relief extends to ULIPs, endowment, health plans, and reinsurance. GST on goods carriage third-party cover cut from 12% to 5%.
ET Graphics: The big winners of GST 2.0
GST tax rates on common use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax regime.
Congress terms GST overhaul 'GST 1.5'; says wait for 'true GST 2.0' continues
The Congress party has criticized the GST Council's overhaul of the GST regime, calling it "GST 1.5" and questioning its ability to stimulate private investment and ease the burden on MSMEs. They argue that the wait for a "true GST 2.0" continues, particularly regarding the extension of compensation to states.
Will insurance premiums become cheaper in GST 2.0?
The GST Council has eliminated the 18% tax on health and life insurance premiums, a move under PM Modi's GST 2.0 reforms aimed at simplifying the tax structure. This exemption is expected to lower premiums, potentially boosting demand and increasing insurance accessibility for a wider population, though insurers may face short-term margin pressures.
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