<h1>GST exemption removes 18% tax on individual life and health insurance premiums from September 22, 2025, cutting costs</h1> With effect from September 22, 2025, the GST Council's reforms removed the 18% GST on individual life and health insurance premiums, including family floater, senior citizen policies and related reinsurance, making such premiums cheaper and saving individual policyholders up to 18% on insurer-charged premiums. The exemption, decided at the 56th GST Council meeting on September 3 as part of GST 2.0 reforms, was implemented by public-sector insurers and applies to term life, ULIP and endowment policies. The government had collected roughly Rs 16,398 crore from GST on life and health insurance and reinsurance in FY24; the decision follows broader rate adjustments under the reforms.