Big Relief! Govt Notifies GST Exemption on Insurance Services [Read Notification]:

Big Relief! Govt Notifies GST Exemption on Insurance Services [Read Notification] The Ministry of Finance (Department of Revenue) shared a notification on September 17, 2025 in powers given by Section 9 (3) and (4), Section 11 (1), Section 15 (5) and Section 148 of the Central Goods and Services Tax Act, 2017 (12). The Central Government, having considered the recommendations of the Council and being satisfied that it is necessary in the public interest, makes the following changes in the notification of the Government of India in the Ministry of Finance (Department of Revenue), number 12/2017-Central Tax (Rate), dated the June 28, 2017. (a) In the table (i) against serial number 18, in column (3), after clause (b), the following explanation will be placed: “Explanation – Nothing contained in this entry will apply to:

•  local delivery services provided by an Electronic Commerce Operator; or
•  local delivery services provided through an Electronic Commerce Operator.”;

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(ii) after serial number 36B and the entries relating thereto, the below-mentioned entries and serial numbers will be inserted:

36C	Heading 9971	Services of life insurance business provided by an insurer to the insured, where the insured is not a group. [Please refer to clause (zfb) in para 2] Explanation: For the removal of doubts, it is hereby clarified that: a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance.	Nil	Nil
36D	Heading 9971	Services of health insurance business provided by an insurer to the insured, where the insured is not a group. [Please refer to clause (zfb) in para 2] Explanation: For the removal of doubts, it is hereby clarified that: a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance	Nil	Nil
36E	Heading 9971	Reinsurance of the insurance services specified in serial numbers 36C or 36D.	Nil	Nil

(b) In paragraph 2, (i) The following will be replaced for clause (ze) “(ze) ‘goods transport agency’ means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called, but does not include (i) an electronic commerce operator by whom the services of local delivery are provided, (ii) an electronic commerce operator through whom the services of local delivery are provided”;

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(ii) The following will be replaced for clause (zfa) “For the purposes of entries at serial numbers 36C and 36D in the table above, “group” refers to a collection of persons who come together with a shared purpose or to engage in a common economic activity, other than for the sole purpose of availing insurance, and includes: a. Employer- employee groups, where an employer-employee relationship exists between the master/group policyholder and the members of the group in accordance with the 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.” (iii) The following clause will be placed after clause (zg): “(zga) ‘health insurance business’ refers to the carrying on of contracts that secure sickness benefits or medical, surgical, or hospital expense benefits, whether inpatient or outpatient, and includes travel and personal accident cover;” Note: This notification will come into effect from September 22, 2025. For Complete details refer the following notification-