By Admin 
GST on Life and Health Insurance: Union Finance Minister Nirmala Sitharaman announced several big GST reforms under GST 2.0 on Wednesday night. During this time, the health sector has been given a big gift. It has been decided to free GST on the premium on Personal Life Insurance and Health Insurance Policy. At present, GST is charged at the rate of 18 percent on health and life insurance premiums. Now under GST reforms, there will be no GST on their premium. This new rule will come into effect from 22 September.
Insurance will be economical for common man
The Finance Minister said that this decision taken under GST 2.0 will be more economical for the common man than before and its scope will increase further across the country. Along with this, all personal ULIP plans, family floater plans and term plans will be freed from GST. Term Life, Unit Linked Insurance Plan (ULIP) and Endowment Plan all come in the category of Life Insurance Policy. Now with this new change, GST will be zero on them. Also, their reinsure will also come in the category of zero GST.
Now only base premium will have to be paid
After this exemption received under GST reforms, now customers will pay only base premium. They will not have to pay GST separately on this. Industry experts say that this can reduce the policies premium by about 15 percent, which will make them more economical and will increase their reach to more and more people in the country. Suppose if someone pays a premium of Rs 100 to buy a policyholder insurance policy, till now he had to pay Rs 118 with 18 percent GST. Whereas this will not happen now.
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