# GST on Health Insurance in 2026: Is It Zero?

> GST on individual and family floater health insurance is nil from 22 Sep 2025. Group and employer policies still pay 18%. What it means for you.
- **Published**: 2026-10-18
- **Modified**: 2026-10-18
- **Category**: health-insurance
- **URL**: https://www.tldr.money/articles/health-insurance/gst-on-health-insurance

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Until September 2025, every health insurance premium carried 18% GST. That changed for individual buyers. This guide sets out the position as of **18 October 2026**, with the primary documents linked below.

## The rule now

CBIC **Notification No. 16/2025-Central Tax (Rate)**, dated 17 September 2025, added entry 36D: "services of health insurance business" are **nil-rated** where the insured is an individual, or an individual and the family of that individual. Reinsurance of those policies is also exempt (entry 36E). The notification took effect on **22 September 2025**.

## Who benefits

The Department of Financial Services FAQ confirms:

- **Individual health policies, including family floater plans:** no GST.
- **Individual policies with built-in extras** such as travel or personal accident cover, sold as one product for one price: the whole product is exempt.
- **Group and employer-sponsored health policies:** still 18%.

## Timing questions

- GST is decided by the **payment date**. If your premium was due on 21 September 2025 but you paid on or after 22 September, no GST applies.
- **Instalments:** each instalment is taxed by the date it is paid.
- If you paid in advance before 22 September 2025, the rate depends on when two of three events (supply, invoice, payment) fell. Check your renewal notice.

## The October 2026 change for employers

According to Business Standard (8 October 2026), the GST Council said employers would get **input tax credit** on GST paid for employee group health and life insurance. That lowers the effective cost for employers. It is a recommendation that still needs legislation, and it does not change individual policies. If you rely on [employer cover](/articles/health-insurance/personal-vs-corporate-health-cover), keep a personal policy anyway.

## What to do

- Check that your renewal invoice shows no GST on an individual or floater policy.
- If you were holding back on a bigger sum insured because of cost, recompare. [How much cover you need](/articles/health-insurance/how-much-health-insurance-cover) helps size it.
- Your premium still qualifies for the [Section 80D deduction](/articles/health-insurance/section-80d-tax-benefit) under its usual rules.
- NRI buyers: see [health insurance for NRIs](/articles/health-insurance/health-insurance-for-nris).

## Sources

- [CBIC Notification No. 16/2025-Central Tax (Rate), 17 September 2025](https://www.caalley.com/gst25/16-2025-CTR-eng.pdf)
- [Department of Financial Services: Exemption of GST on individual life and health insurance (FAQ)](https://financialservices.gov.in/exemption-gst-all-individual-life-insurance-and-health-insurance-policies)
- Business Standard, GST Council allows employers to claim ITC on group insurance coverage, 8 Oct 2026: https://www.business-standard.com/finance/insurance/gst-council-allows-employers-to-claim-itc-on-group-insurance-coverage-126100801488_1.html
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