GST Rates & Applicability on Life Insurance Policy

Is GST Applicable on Life Insurance Premium?

What Is a GST Percentage Slab?

What Are the Current GST Rates on Life Insurance Premiums?

Check out the current GST rate on life insurance premiums:

Insurance Type

Applies To

GST Rates

Term Insurance Policy

Payable Premium

18%

Unit Linked Insurance Policy

All Applicable Charges

18%

Insurance Riders

Payable Premium

18%

Endowment Policy

First Premium

4.50%

Endowment Policy

Payable Premium, i.e. Regular Premium

2.25%

Single Premium Annuity Policy

Payable Premium

1.80%

Is it Possible to Claim a Tax Rebate for the GST on life insurance?

FAQs about GST on Life Insurance Policy

Is GST paid on life insurance premiums deductible as an income tax? up-arrow

The employee can claim the GST paid on their insurance premium as a deduction from income, together with the premium amount, for tax purposes. To do that the taxpayer should also save any documentation connected to premium payments that serve as evidence of the premium and GST paid.

Is GST applicable on the premiums we pay for term life insurance policies? up-arrow

 Yes, a GST on term insurance of 18% is applicable on the entire premium amount of the policy.

What is the Impact of GST on the Endowment Plan? up-arrow

A tax of 3.75% was previously levied as a service tax on endowment and savings plans, along with a renewal charge of 1.8%. However, after the GST came into effect, there was a tax of 4.5% for the endowment plan in the first year, along with a renewal charge of 2.25%.