Why zero GST on insurance premiums doesn't mean cheaper policies for you
Last Update Date: 06-10-2026
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that zero GST would strip insurers of input tax credit, which they may recover through higher base premiums, and said a lower GST rate with the credit intact could save policyholders more.
More of Abhishek's views on insurance
With the government signalling GST changes, one proposal is to remove GST on life and health insurance premiums, which now carry 18%. The article explains why a zero rate may not cut costs as much as expected, because insurers would lose input tax credit, and compares this with a lower rate that keeps the credit.
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Why zero GST on insurance premiums doesn't mean cheaper policies for you