FAQs

GST Rate Change on Health Insurance

The 56th GST Council Meeting, held in early September 2025, introduced major reforms to simplify tax rates and reduce the burden on essential services. One of the key outcomes was the removal of GST on individual health insurance policies, effective 22nd September 2025. This move aims to make healthcare more affordable and accessible for all.

Insurance Illustration

GST-Free Health Insurance Begins 22nd September 2025

Individual Health
Insurance

Family Floater
Plans

Senior Citizen
Health Insurance

Note: Star Group Health Insurance (SGHI) policies still attracts 18% GST for renewals and new purchases
GST Applicability Scenarios for Insurance Policies
Q No.
Scenario
GST Applicable?
01

Customer pays for a fresh policy on or after 22nd September 2025, and the policy start date also begins on or after 22nd September.

No, GST is not applicable
02

Customer pays for a fresh policy on or before 21st September 2025, and the policy start date begins on or after 22nd September 2025

No, GST is not applicable
03

Renewal premium is due on or before 21st September 2025, and the policy start date begins on or before 21st September 2025

Yes, GST is applicable at 18%
04

Renewal premium is due on or before 21st September 2025, and the policy start date begins on or after 22nd September 2025

No, GST is not applicable
05

Will the Sum Insured or benefits change due to GST waiver?

No. This is only a pricing/taxation change. Product benefits, terms, and conditions remain unchanged
06

Will the Star Health group health insurance policies attract 18% GST for renewals and fresh policies?

Yes, GST is applicable at 18%

Note:Policy Start Date = Risk Commencement Date (RCD)