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GST on Insurance Policy: You have insured?

by Amit Tripathi
July 22, 2025
GST collection in May 2025: 2.01 lakh crore rupees came to the treasury through GST in May, 16.4 percent more than this month last year, GST collection in May 2025 is more than two lakh crore up by 16 percent

New Delhi. If you have insured, then this news is for you. It has been reported from the sources that a big decision can be taken on the insurance policy in the next meeting of the GST Council. Sources say that in the next meeting of the GST Council, the decision to remove GST on life, term and insurance of senior citizens is possible. There has been a demand for a long time that GST should be abolished from insurance. So that the common people can get relief. However, no decision could be taken on giving relief to those who insured in this regard.

The issue of removing GST on the insurance policy of life, term and senior citizens was first raised by senior minister Nitin Gadkari in the Modi government. Nitin Gadkari also wrote a letter to Finance Minister Nirmala Sitharaman to remove GST from insurance. After Gadkari’s letter, West Bengal CM Mamata Banerjee also raised the demand for the removal of GST from the insurance policy. After which other opposition parties also made the same demand from the Modi government. At the same time, the Finance Ministry had said that he does not decide to remove or put GST. The Finance Minister of the state governments consider this in the GST Council meeting.

The 56th meeting of the GST Council is scheduled to be held in this month i.e. July 2025. In this meeting, if it is decided to remove GST from the insurance policy, then crores of people will get relief. It has been reported earlier that the rate of 12 percent GST can be abolished. With this, all the things that come at the rate of 12 percent will come at the GST rate of 5 percent and 18 percent. It is also expected to provide relief to the common people. The special thing is that in addition to Bihar assembly elections in November this year, assembly elections of all important states are going to be held by 2029. In such a situation, the decision to remove GST from insurance can also facilitate political parties in pulling the common voters towards them.

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