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GST Rates on Life Insurance Premium

Following table provides details of GST rates which are applicable on insurance premium in case of various of type of insurance plans. These GST Rates are applicable with effect from 01 July 2017.

Types of PlansGST RateOld Rates (Service Tax)
Endowment Plans
(e.g. New Jeevan Anand (815), Jeevan Labh (836) etc)
4.5% on First Year Premium
2.25% on second year onward Premium
3.75% on First Year Premium
1.875% on second year onward Premium
Single Premium Annuity/Pension Plans
(e.g. Jeevan Akshay VI (189)
1.8%1.5%
Term Plans
(e.g. Amulya Jeevan 2 (823) and Anmol Jeevan 2 (822))
18%15%
Health Insurance Plans18%15%
Ulip Plans18%15%

Comments & Reviews (37)

Wrote : 10-07-2018 13:02:41

Sir, I purchased on line E TERM from LIC in Jul 2017, my premium was 23850 annually, this year they added GST @18% which is around 4300 more . I have GST number on my PAN , since I am running a proprietorship firm, can I claim this GST as input Credit in any form. I would also like to know if other private Insurance company also charge 18% GST on Term Plan? Please reply....

Replied : 15-07-2018 00:26:48
We don't have much information in this case, please consult some tax consultant. But, paid GST does not come under input tax credit, so it is not a case of refund. It will be something like your proprietary firm orders burger from McDonalds and pays bills along with GST and you want that paid GST to be return. Anyways please visit your tax consultant.
GST is levied by Government of India, so both private and government insurer (more broadly all service providers) charge GST to be deposited to GOI.

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Wrote : 28-04-2018 16:20:37

Purpose of GST is to hurt people in order to enjoy politicians.

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Wrote : 28-04-2018 11:39:45

I have a policy, Jeevan Anand (815) since 28-10-2015. Unfortunately it was pending for last 6 dues sine 28-01-2017. I should have been paid an amount of 6919.00 Rs/Quarterly. As the policy lapsed I made a revival quotation and as per that i have to pay an amount of 44,027.90 Rs (6 due, 41514 + interest, 251.90). Also i heard GST is applicable on this amount. Can you please tell what will the GST amount for this policy revival. Thanks.

Replied : 28-04-2018 12:09:45
GST rate will be 2.25% on your premium.

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Wrote : 29-03-2018 10:47:40

Hi!! Good Morning!!! Dear Sir, I am having a policy since 2015 , its policy no: 895694453. Sir I just want to know Y is GST been added on my emi's .

Replied : 30-03-2018 12:28:18
In 2015, it was service tax and now it is GST and has to be paid with premium.

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Wrote : 05-02-2018 11:33:14

my police no 927134519 money back 25/01/2014 commencement dt. my premium amt 15432. but when i pay through online its showing 15432 + gst 347 = 15779.22. can i pay gst?

Replied : 05-02-2018 11:59:08
Yes, premium needs to be paid along with GST.

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Wrote : 03-02-2018 15:50:39

I am 100% agree with you.

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Wrote : 23-01-2018 20:56:13

Dear Representative, I am holding Jeevan Komal plan for my kid since 2008. Is GST applicable for this please? Also noted that there is no applicable GST for Money back plan (every 5yrs), which holding from yr 2000, comment if any please. Much appreciate your time and advise. Thank you, Kind regards. TA

Replied : 24-01-2018 09:53:07
There was no separate service tax before 2014, so if your policy was taken before 2014, them GST will not be applicable.

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Wrote : 10-01-2018 18:57:55

Hi Sir/Madam, I want ask a simple question, im working as software engineer, now my concern is on GST Tax on policy. Tax amount is deducting every month from my salary and also where ever i purchase anything there also i need to pay tax, why should i pay every where, this is bullshit you guys are following, also bullshit i need to pay extra amount on my policy also. why should i pay, if you guys applying GST on policies also im going to withdraw my money, i dont want to continue with this bullshit kind of policies. And one more thing why admin should approve our comments to display here, is this bullshit admin work, why you guys dont want reveal everything to the people.

Replied : 10-01-2018 22:00:05
Sir, we respect your concern regarding GST and income tax. Please note, this website is a private blog for just spreading knowledge about insurance.

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Wrote : 28-12-2017 11:03:30

My policy is created in 2014. Still I am paying GST amount of 2.25% of total premium. Almost 50 rs. extra I am paying on every premium. This is ridiculous.

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Wrote : 27-12-2017 21:31:44

For each premium i pay which is inclusive of GST, can i claim the same amount for tax relief under 80C or just the premium amount is to be shown.

Replied : 28-12-2017 13:11:09
Premium without GST to be used for tax exemption claim.

Wrote : 03-01-2018 11:32:51

Can you suggest the page from where u got clarity saying that GST portion to be excluded?

Replied : 03-01-2018 12:31:52
GST portion is not part of life insurance premium. For your reference, you may download consolidated premium payment receipt form your customer account, it indicates total premium .

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Wrote : 27-11-2017 17:34:59

Small savings and security insurace through LIC is for most of the common citizen of India, whereby they are not getting more profit than other small investments. GST Charges on premium is injustice against the policy holders It is discouraging the citizen for making their life insured. Why not every policy holders raise their voice against this tax.

Wrote : 20-02-2018 16:32:51

Think about this when you will choose next govt.

Wrote : 27-03-2018 10:54:22

I am totally agreeing with your point. This is 100% injustice to a common citizen like us. Everywhere GST... fed up with this.

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Wrote : 18-11-2017 20:40:25

Let me know my renewal premium amount adding GST. My policy is Endowment assurance issued on 11/2008 with half yearly payment amount Rs 31,247.00 due in Nov.

Replied : 19-11-2017 18:46:43
GST will not be applicable to you policy.

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Wrote : 25-10-2017 21:56:45

Why GST on LIC Policies ? I have new 815 Jeevan Anand Policy. 4.5% on First year. It will burden on common people like us !!!

Replied : 26-10-2017 00:23:48

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Wrote : 23-10-2017 12:14:12

what will be GSt amount for Jeevan Anand policy (Old)

Replied : 23-10-2017 19:30:06
GST will not be applicable for old jeevan anand premium.

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Wrote : 17-10-2017 18:27:43

It is injustice that LI C is levying 18% GST on Health insurance plans. I wont renew the plan aftet March since the Kerala Govt plans to start a new health insurance to Govt employees.

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Wrote : 16-10-2017 10:48:59

my policy is lic money back policy since 2011 , So please confirm the gst rate ....

Replied : 16-10-2017 20:26:41
There was no separate service tax in the policies which were issued before 2014, so GST will not be applicable in your case.

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Wrote : 24-09-2017 14:44:09

What will be GST for LIC Jeevan Labh, annual premium paid for 1st year was Rs 41963 for Base policy and 42963 as total installment premium.

Replied : 25-09-2017 11:02:21
GST rate will be 2.25% on premium.

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Wrote : 20-09-2017 18:30:37

LIC plan Jeevan Akshay for Rs. 7.5lac what will be GST amount

Replied : 20-09-2017 19:39:07
GST rate will be 1.8% in case jeevan akashay VI.

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Wrote : 10-09-2017 13:46:06

Sir My policy is jeevan labh (836) 15-21 plan. I have monthly installment. Premium is 2366 monthly. GST apply what is my new monthly premium ? Please help me

Replied : 10-09-2017 22:31:53
You can simply add 4.5% for first policy year and 2.25% for subsequent years, for example, of you have already paid 12 monthly premiums then rate will be 2.25%.

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Wrote : 22-08-2017 19:23:39

sir, plz tell me I have new endowment plan taken in Aug. 2014. the above mentioned taxes shows addition on 2.25 % taxes. previously it was 1.875(service tax) from second year onwards. Will the difference between the two taxes is applicable on premium or 2.25 % will be an addition on the premium.

Replied : 22-08-2017 20:03:23
It will 2.25% on your premium.

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Wrote : 22-08-2017 12:22:33

my premium amount is 3260/ how many rupies diposit in GST amount

Replied : 22-08-2017 12:41:17
What is your plan name or table number and when(year) was it purchased?

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Wrote : 19-08-2017 15:45:17

my policy new jevan anand my premium 13312 how many GST chargeable

Replied : 19-08-2017 17:16:02
The GST rate will be 4.5% for first year premium and 2.25% for second year onward premium.

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Wrote : 17-08-2017 15:26:48

Sir/Madam, My half yearly premium Rs. 6065/- how much amount add after GST is Rs. 6065/-

Replied : 17-08-2017 19:00:23
Which type policy you having, please tell table no or plan name. If you plan is 165 or jeevan saral, then GST will not be applicale.

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Wrote : 17-08-2017 07:49:48

In my term policy premium was Rs. 5475 but this year it's Rs.6461. May I know why GST is Rs.986?

Replied : 17-08-2017 09:17:11
GST rate on term plan is 18% which was 15% before GST and why it is 18%, only government can answer.

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Wrote : 15-08-2017 12:22:59

i have Jeevan Saral Policy i am pay Quarterly premium 1531 how much amount Add GST

Replied : 16-08-2017 22:08:18
GST is not applicable on jeevan Saral (Table 165).

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Wrote : 15-08-2017 08:05:11

Sir either GST is applicable on new policies which were opened on or after 01-july-2017 or on old policies also ?

Replied : 17-08-2017 09:27:44
GST is applicable on policies which are issued after 2013, though it was services tax earlier, but now it is GST.

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Wrote : 06-08-2017 02:52:51

What is GST applicable for one time premium if 6.00 lakhs in jeevan akshay

Replied : 06-08-2017 16:43:22
GST rate will be 1.8%.

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Wrote : 02-08-2017 00:28:16

let me know GST on table no 834 ,Jeevan Tarun, paying 2nd half yearly premium

Replied : 02-08-2017 01:47:54
Applicable GST rate will be 4.5%.

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Wrote : 22-07-2017 15:55:16

Is there any GST OR PROCESSING FEES on PLAN 842?

Replied : 22-07-2017 16:21:20
This plan is exempted from GST.

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Wrote : 13-07-2017 16:30:56

my lic plan no-165 , 14 please after gst how premium deposit, plz reply

Replied : 13-07-2017 20:24:17
GST will not apply on Plan 165 and Plan 14.

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