You're asking whether the Goods and Services Tax (GST) on a Group Mediclaim (group health insurance) scheme policy in India will be nil. Here's the latest, as of early September 2025:
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Recent Developments
1. GST Exemption Applies to Individual Policies Only
In the 56th GST Council meeting, policymakers have approved zero GST on individual health and life insurance policies, reducing it from the previous 18%—effective September 22, 2025 .
This decision aims to make such policies more affordable for individuals .
2. Group Mediclaim Policies—GST Still Applies
Group health insurance (Mediclaim) premiums remain subject to 18% GST, as per current law .
Employers cannot claim Input Tax Credit (ITC) on GST paid for group health insurance unless it's mandatory under law .
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Summary Table
Policy Type Current GST Status (as of Sept 3, 2025)
Individual health / life insurance GST exempt (0%), effective Sep 22, 2025
Group Mediclaim (group health) GST still 18%, no exemption; ITC not typically allowed
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What This Means for You
Even though GST on individual policies is being reduced to nil, this does not extend to group Mediclaim policies. These continue to attract 18% GST with no change announced as of now.
Furthermore, because insurers can't claim ITC on group health policies (unless mandated by law), there's no financial mechanism reducing or eliminating this GST component for employers or policyholders under such schemes.
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If you'd like, I can keep an eye on any future GST Council updates or explore how this might impact premiums and tax implications for group policies. Let me know!
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