GST Information & Updates - SBI Life SmartCare
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Key Highlights

For 25 years, SBI Life has protected families and their dreams. With GST moving from 18% to 0%, that promise shines brighter.

71 Million+

No.Lives Covered*

₹ 4.7 Trillion+

Assets Under Management

98.4%

Death Claim Settlement Ratio#

1100+

Number of Offices

*Inforced Lives | #Individual and Group Death Claims | (Date: June 30, 2025)

0% GST. A move that liberates the nation!

Zero GST on Life & Health Insurance Premiums

Individual life insurance and health insurance (including Term plans, Endowments, ULIPs, senior citizen health covers) are exempt from the 18% GST w.e.f. 22 September 2025.

What this means:  Premiums become cheaper for policyholders. What you pay is just the base premium without the extra GST load.

Encouragement of Higher Insurance Penetration

With premiums more affordable, more people especially in the middle‐class and “missing middle” may buy or renew insurance plans.

Why it matters:  As total cost of premium becomes cheaper for the existing as well as prospective policyholders, this will encourage existing policyholders to enhance insurance cover and to opt in for insurance for those who are still away from insurance.

Relief in Out-of-Pocket Costs for Policyholders

Because GST is removed from total premium payable, the annual cost for policyholders goes down, which eases their financial burden.

Real impact:  For many families, savings of GST are possible on premiums, this may mean more people will maintain continual coverage.

Boost to Trust and Transparency

The reform signals that regulators are listening to consumer cost concerns, aiming to make insurance more accessible.

Why this matters:  It builds confidence in taking insurance cover and reduces resistance in buying policies.

GST Blogs you would like to read

22th Sept, 2025

GST Exemption 2025 and Life Insurance: What Buyers Should Know | SBI Life

Read Blog

8 min Read

22th Sept, 2025

Life Insurance Premiums After GST Exemption - Savings Explained | SBI Life

Read Blog

8 min Read

Frequently asked questions

From September 22, 2025, all individual life and health insurance premiums are fully exempt from GST, i.e. reducing the rate of GST from 18% to 0%.

The exemption applies to all individual life insurance (Term, ULIPs, Endowment plans) and health insurance policies, including individual, family floater, and senior citizen health plans.

No. Group insurance policies, such as employer-sponsored schemes, continue to attract 18% GST.

GST applies to premiums paid for new policies or renewals due before September 22, 2025. For new premiums paid or renewals due after the given date, GST will not be applicable.

Yes, total premium payable will be effectively lower by applicable GST on base premiums, making policies more affordable for all new and existing individual policyholders.

Yes, GST is also exempted on riders attached to individual life and health insurance policies from September 22, 2025.

GST/Cr5/09/25/WEB/ENG