GST Exemption On Retail Insurance Set To Boost Demand; HDFC Life, Niva Bupa Among Motilal Oswal's Top Picks

6 days ago 4

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The change will be effective from September 22, 2025; GST cuts to benefit policyholders, says Motilal Oswal

04 Sep 2025, 10:48 AM IST i

04 Sep 2025, 10:48 AM IST

04 Sep 2025, 10:48 AM IST

<div class="paragraphs"><p>The government has exempted retail health insurance and retail life insurance from GST as compared to a tax of 18% with input tax credit earlier.</p><p>(Source: <a href="https://unsplash.com/ja/@fitmasu?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Fitsum Admasu</a> on <a href="https://unsplash.com/s/photos/jogging?utm_source=unsplash&utm_medium=referral&utm_content=creditCopyText">Unsplash</a>)</p></div>

The government has exempted retail health insurance and retail life insurance from GST as compared to a tax of 18% with input tax credit earlier.

(Source: Fitsum Admasu on Unsplash)

In the near term, ensuing renewals until Sep 22, cancellations of the policies sold in the last one month (which are in the free look period), and the delay in fresh purchases until Sep 22 can pose some challenges from the cash flow perspective. General insurance players would benefit from the cut in GST rates on automobiles, which is expected to boost vehicle sales.

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