Services of health insurance business provided by an insurer to the insured, where the insured is not a group. — GST rate 0%

As per Notification 12/2017 (amended by 16/2025), services of health insurance business provided by an insurer to the insured, where the insured is not a group. classified under SAC Heading 9971 attracts 0% GST effective 22 September 2025. On an intra-state supply this is charged as 0% CGST plus 0% SGST; on an inter-state supply the full 0% is charged as IGST. This rate applies subject to the condition: This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. Family shall include all individuals insured as family in the contract of insurance. 'Group' (which is excluded from this exemption) means a group of persons who join together with a commonality of purpose or for engaging in a common economic activity, other than availing insurance, including: (a) employer-employee groups, where an employer-employee relationship exists between the master/group policyholder and the members of the group in accordance with applicable laws; (b) non employer-employee groups, where a clearly evident relationship exists between the master/group policyholder and the members of the group, for services/activities other than insurance. 'Health insurance business' means the effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in-patient or out-patient, travel cover and personal accident cover..