<h1>GST exempted on individual life and health insurance premiums from Sept 22; insurers urged to pass savings to policyholders</h1> All individual life insurance policies (term, ULIP, endowment) and their reinsurance, and all individual health insurance policies (including family floater and senior citizen plans) and their reinsurance, are exempt from Goods and Services Tax (GST), effective September 22. Previously, an 18% GST applied to these premiums. The GST Council announced the move at its 56th meeting and expects insurers to pass on the reduction to policyholders. In FY24 the government collected approximately Rs 16,398 crore from GST on life and health insurance and reinsurance. The Council also revised some slabs, retaining two main rates of 5% and 18% and a special 40% on select items.