Life and Health Insurance for Individuals & Families Fully Exempted from GST: CBIC Notifies [Read Notification]
This exemption will not apply to group insurance policies, such as employer-employee or other organisational group covers, which will continue to remain taxable.
Health - insurance - GST - Taxscan
Health - insurance - GST - Taxscan
The Central Board of Indirect Taxes and Customs ( CBIC ) has issued Notification No. 16/2025 dated 17th September 2025, fully exempting life insurance and health insurance services provided to individuals and families from Goods and Services Tax ( GST ).
The exemption, effective from 22nd September 2025, applies to insurance contracts where the insured is an individual, or an individual along with their family. The notification clarifies that the family will include all persons covered as family members in the insurance contract.
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The exemption covers:
- Life insurance services provided by insurers to individuals and their families.
- Health insurance services provided by insurers to individuals and their families.
- Reinsurance of such life and health insurance policies.
However, this exemption will not apply to group insurance policies, such as employer-employee or other organisational group covers, which will continue to remain taxable.
To prevent doubts, the notification has also introduced a definition of health insurance business, covering contracts providing for sickness benefits, medical/surgical expenses, hospitalisation, travel cover, and personal accident benefits.
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