Save tax up to ₹75,000~ u/s 80D
Save tax up to ₹75,000~ u/s 80D
GST on Health insurance premiums have been reduced from 18% to 0% from 22 September 2025 onwards. For most individual health insurance plans, you will not pay GST on your premium, making coverage more affordable.
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The Government of India has approved a reform based on the 56th GST Council meeting. This change removes the previously applicable 18% GST on these premiums.
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Health Insurance for listed pre-existing diseases
Health insurance for elderly with no pre-policy checkup.
By removing the 18% GST on health insurance premiums:
Understand with the help of an illustrative example below (the actual premium depends on the plan you choose). Consider a health insurance policy with a yearly premium of ₹10,000:
| Detail | Amount |
|---|---|
| Yearly Base Premium | ₹10,000 |
| GST before 22 Sep 2025 (18%) | ₹1,800 |
| Total Before Exemption | ₹11,800 |
| GST After Exemption | ₹0 |
| Savings | ₹1,800 |
GST rate on health insurance is now 0%, including:
Certain types of insurance continue to attract GST for health insurance at the standard 18% rate:
| Type of Policy | GST Rate Before 22 Sep 2025 | GST Rate Now |
|---|---|---|
| Individual Health Insurance | 18% | 0% |
| Family Floater Plan | 18% | 0% |
| Senior Citizen Plan | 18% | 0% |
| Group / Employer-Sponsored Policy | 18% | 18% |
More about GST Reform: GST On Health Insurance Removed? Know the Facts!
The GST exemption on individual health insurance premiums was introduced with the following objectives:
By lowering the cost barrier, the reform aims to bring more individuals under health protection and expand the insured population in India.
Disclaimer: GST applicability may vary based on policy structure and future regulatory updates. Care Health Insurance Limited does not determine GST rates; applicable laws govern taxation. Please refer to policy documents and consult a tax advisor for complete details.
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No. GST on eligible individual health insurance policies is 0% from 22 September 2025 onwards.
All individual health insurance policies, including family floater and senior citizen plans, are exempt from GST.
Yes. Employer-sponsored or group health insurance policies still attract 18% GST.
If you are renewing an individual health insurance policy, you do not pay GST on the premium.
No. It applies to both new purchases and renewals of eligible individual policies.
No. Employer-provided group policies continue to attract 18% GST.
Yes. Earlier, 18% GST was added to your base premium. Now, you pay only the base premium.
Yes. Family floater health insurance plans are exempt.
For eligible individual multi-year health insurance policies, GST is not applicable to premiums paid on or after 22 September 2025.
If a rider or add-on is part of an eligible individual health insurance policy, the 0% GST applies accordingly. GST treatment may vary based on how the add-on is structured, so always check the policy details before purchase.
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#Annual premium for product 'Care' and 'Care Shield (add on)' is Rs. 4286/-(excl. GST) for 1 adult falling under the age bracket 05-24 years.
^^Number of Cashless Healthcare Providers till 31st March 2024
^10% discount is applicable for a 3-year policy
**Number of Claims Settled as of Dec'24
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