GST 2.0: Health insurance firms may raise policy tariffs by 3-5% to compensate for input tax credit losses amid tax cuts

The Goods and Services Tax (GST) Council, after its 56th meeting on 4 September 2025, announced a GST exemption on all health and life insurance premiums as part of the central government's indirect tax rationalisation move. The industry has welcomed this step even though the risk of a higher premium looms due to the losses imposed by the input tax credit (ITC) on companies