Finance Minister Nirmala Sitharaman has announced a major relief for insurance policyholders.
Accordingly, the GST rate on insurance services, previously at 18 percent, will now be split into separate categories.
All individual life insurance policies -- term, ULIP, and endowment -- along with their reinsurance, will be fully exempt.
"Exemption of GST on all individual life insurance policies, whether term life, ULIP, or endowment policies, and reinsurance thereof, to make insurance affordable for the common man and increase the insurance coverage in the country," said the FM.
Individual health insurance policies, including family floater and senior citizen plans, and their reinsurance, will also attract no GST.
"Exemption of GST on all individual health insurance policies, including family floater policies and policies for senior citizens, and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country," she said. -- ANI
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