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 (53)

Wrote :

10-10-2023 14:11:03

Governments previously encouraged people to take policies and to ensure them the Government's assurance and to protect them from the private insurance companies which tried to amass money but not to extend any assured insurance, formed the Life Insurance Corporation of India. The crores and crores rupees thus collected by LIC, was loaned to the Government for the building up of infrastructure of our country. But recently, the Governments fines these people by imposing GST for helping it!

Wrote :

13-10-2023 12:01:33

Thanks for your input.

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Wrote :

18-04-2021 08:38:39

Shall we get return back that GST amount at last with Assured amount.

Wrote :

18-04-2021 18:47:39

No, GST is paid to government and it is not refunded.

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Wrote :

09-10-2020 13:55:26

What is the rate of GST in Jeevan Shanti policy plan.

Wrote :

09-10-2020 15:26:45

1.8% of the purchase price.

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Wrote :

22-05-2020 14:01:19

Service tax must be applicable only when I am getting a service from LIC. In the case of health policies, I am getting a service only if I made a claim. When I pay the premium amount, I am not getting any service. So the GST amount must be deducted only at the time of the claim. It is only just the justice.

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Wrote :

27-08-2019 06:27:52

Hi I recently put jeevan Shanthi plan for 10l. But agent collected 10,18000 from me. In the document it was mentioned purchase price is 10l. Purchase price does not include Gst? What’s the gst % rate

Wrote :

28-08-2019 11:47:50

In this plan, GST at the rates of 1.8% is applicable on the purchase price. So if your purchase price is 10,00,000,then total amount you need to pay will be 10,18,000.

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Wrote :

02-05-2019 18:24:23

Sir / Madam, Please confirm the GST applicable on my premium for New Money back policy: 25 Years

Wrote :

02-05-2019 20:30:41

Yes, GST will be applicable on your premium.

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Wrote :

25-03-2019 15:03:52

Sir, I have lic policy jeevan anand(149). Whether GST applicable

Wrote :

26-03-2019 12:09:53

No, GST is not applicable separately, you will pay same amount as earlier.

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Wrote :

11-02-2019 08:39:21

GST on LIC premium is like a penalty imposed on the policy holders for taking instance. It is very much condemnable. Instead of encouraging and motivating the public, the GOVT is discouraging to take policies in LIC. The Government should withdraw the GST for Insurance policies.

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Wrote :

18-01-2019 18:14:07

I STRONGLY OPPOSE ANY TYPE OF GST ON LIC POLICIES OR SIMILAR INVESTMENT ON INSURANCES PAYMENTS OF OTHER COMPANIES OR AGENCIES. AS SOME ONE SUGGESTED TO STOP THIS BY INDIAN GOVT. LET US MAKE A STRONG FORUM FOR SUCH ISSUES. EXPERTS IN THIS FIELDS. CA' S, CMA'S ACCOUNTANTS AND ALL GST TAX PRACTITIONERS PL. INITIATE SUCH MOVEMENTS IN THE OVERALL INTEREST OF ALL CONCERNED. PL. START. ASK PEOPLE TO JOIN. JAY BHARAT JAY HIND. U ALL R WELCOMED. THANKS

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Wrote :

17-01-2019 10:03:58

All Insurance plans should be FREE of GST. The govt should provide medical facilties free to the public. People go in for Medican and Life insurance only to help them but the GST charged is used by the govt for other projects.

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Wrote :

02-01-2019 12:26:55

I need to generate online statement which should including GST and premium paid. Which option to choose on website so I can get my paid statements including GST.

Wrote :

02-01-2019 12:54:25

Individual premium paid receipt indicates premium ang GST amounts. You may login to your customer account and download it from there.

Wrote :

02-01-2019 14:41:35

From my login account, which option I need to select to get statement which includes premium + GST amt. I used this way to get statement which shows only premium and not GST Home page--> Basic services--> Policy premium paid statements

Wrote :

02-01-2019 20:16:08

Home page--> Basic services--> Online Payment receipts.
Please note, here you can download premium receipt with GST if it is paid online.

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Wrote :

08-10-2018 13:41:30

Sir I am opened new LIC policy in month of Aug 2018 , I am now clarification for CGST and SGST both are including in LIC policy or one

Wrote :

10-10-2018 23:58:57

The GST on insurance premium is charged differently. Rates are given above.

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Wrote :

03-10-2018 12:47:02

I found very interesting stuff on your blog. Thanks for sharing.

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Wrote :

30-09-2018 21:26:19

I like to invest jevan akshay and jevan shanti for life time of both me and spouse. whether both are under GST. If yes, how much percentage of each.

Wrote :

01-10-2018 00:38:34

GST is applicable @ 1.8% of purchase price.

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Wrote :

19-09-2018 14:16:31

Sir I have a policy jeevan ankur(807), the commencement date is August'2013.can any body tell me ,is there applicable GST on this policy?

Wrote :

19-09-2018 14:30:03

No, GST will not be applicable on policy premium.

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Wrote :

08-09-2018 22:29:54

Sir, I have LIC JIVAN SARAL (WITH PROFIT) Table 165 drawn in 3/2008 mode-yearly. Whether GST is applicable?

Wrote :

11-09-2018 00:34:12

No, GST is not applicable on this plan.

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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....

Wrote :

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.

Wrote :

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 .

Wrote :

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?

Wrote :

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

Wrote :

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.

Wrote :

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.

Wrote :

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?

Wrote :

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.

Wrote :

04-03-2019 10:18:02

Yes I also agree with you, why We pay GST . Some saving for deposite money , You Charge GST ,Tax payer pay every where. Only TAx .......Restrorent, House, Clothe ,Toll Plaza,Cinema ..We demand ONE Nation ONE Tax

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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.

Wrote :

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 !!!

Wrote :

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)

Wrote :

23-10-2017 19:30:06

GST will not be applicable for old jeevan anand premium.

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