As announced after the GST Council meeting earlier this month, the “simplified tax structure” with a majority of items under two slabs of 5% and 18% is in place from today. Several goods and services, including life and health insurance, benefited from the move. Prime Minister Narendra Modi in his address to the nation on the eve of Navratri called the GST relief “savings festival” for the people.

GST on health and life insurance premiums has been reduced to zero. This significant decision was taken at the 56th GST Council meeting and has come into effect from today. Previously, insurance policies were subject to an 18% GST, making insurance more expensive for consumers.

What does this zero GST mean for policyholders?

For example, if a person paid an annual premium of Rs 20,000, i

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