From 22 September, Health Insurance Premiums will be GST-Free! But will your pocket really be light or the new game of insurers will save only 3-6%? Know the real meaning of GST 2.0 and its effect on policyholders.
Health insurance premium gst free: Have you ever thought that your health insurance premium can be GST free? Yes, now it is going to be a reality. From 22 September 2025, GST will end at personal health insurance premium in the country. Union Finance Minister Nirmala Sitharaman announced this at the 56th meeting of GST Council. Earlier, all health policies used to cost 18% GST, which increased the premium significantly. But after the start of GST 2.0, every person can now save up to thousands of rupees annually. The question is whether this relief will reach the customers completely or will insurance companies do a new game? Let’s know in detail …
What is GST 2.0 and why is it special?
GST 2.0 India is actually a major improvement that is aimed at bringing the health sector to the reach of the people. Earlier, on the policy of Rs 15,000, you had to pay an additional GST of about Rs 2,700. Now you will get the same policy for just Rs 15,000. That is, relief in the pocket directly.
What will be the benefit of policy holders?
- Direct savings: Relief up to about 18% every year.
- Easy Budget: It is now easy to include health insurance in the family budget.
- Upgrade chance: With the remaining amount, you can take more coverage or top-up.
- Blessing for Senior Citizen: Because their premium is high, then savings will also be more.
What will be the effect on insurance companies?
The story here is a bit mysterious. Customers will get relief, but insurance companies will no longer be able to take advantage of Input Tax Credit (ITC). That is, they will not get the GST given on the expenses of agent commission, software and office. In such a situation, they may be at the time of renewal. Increase the base premium slightly. This means-Graharis can get real savings of up to 3-6%, not 18% relief.
Which policies will apply to the new rule?
- Personal health insurance plans
- Family floater policy
- Senior Citizen Health Plan
- Top-up and super top-up policy purchased after 22 September
(Keep in mind that this exemption will not apply to the group policy given by the judge.)
Real Question: Benefits or Cheating?
This decision seems very beneficial at first glance. But will the insurers reduce the savings of customers and HIDDEN Premium Hike? That is the real question. Even after the health insurance premium GST Free, the mystery remains intact even after having a health insurance premium gst free.
What will be the effect on the common man?
Starting from 22 September, GST 2.0 is a major change for the common man. Health insurance will now be more economical. However, it is necessary to monitor the strategy of the insurer so that the benefit of this relief can be fully accessible to the customers.