GST Update on Health Insurance – RSGI

Sep 16, 2025 • 3 Min Read

Good news for policyholders! From 22nd September 2025, GST will no longer be applicable on RSGI Individual Health Insurance policies. Here’s everything you need to know.

1. When does the GST exemption start?

The exemption comes into effect on 22nd September 2025. From this date, Individual Health Insurance policies will be issued at 0% GST.

2. What happens to policies purchased earlier?

Any policy bought or renewed on or before 21st September 2025 will continue with 18% GST for that term.

3. Which policies qualify for GST exemption?

At present, the GST Council’s decision specifically mentions individual health insurance and therefore, Group products may not be eligible

• Eligible: Individual Health Insurance plans
• Not Eligible: Group Mediclaim, Travel, Personal Accident, and other specialized covers (these remain at 18% GST).

4. How will taxation work for new policies?

Purchase Date	Risk Start Date	GST Applicable
Before 22-Sep-2025	Before 22-Sep-2025	18%
Before 22-Sep-2025	On/after 22-Sep-2025	0%
On/after 22-Sep-2025	Any date	0%

5. What about portability cases?

• Policies with Risk Start Date before 22-Sep-2025 → 18% GST
• Policies with Risk Start Date on/after 22-Sep-2025 → 0% GST

6. Renewal and Grace Period rules

Policy Status	Renewal Date GST Rate
Renewed before 22-Sep-2025	18%
*Expired before 22-Sep-2025, renewed on/after 22-Sep-2025	0%
*Expired after 22-Sep-2025, renewed anytime after	0%

*However, it should be noted that no coverage for the period when policy is expired

7. If premium is paid before 22-Sep but policy starts after?

Coverage begins only from the policy risk start date, so GST exemption applies if the risk start date is 22-Sep or later.

8. Will existing terms change for new/ port/ renewal policies?

No. All coverage benefits remain the same. The only difference is the removal of GST for eligible policies starting 22-Sep-2025.

9. Already paid GST before 22-Sep?

No refunds will be given. The GST exemption applies prospectively only.

10. How will customers know GST has been removed?

It will be clearly reflected in:

• Premium receipts
• Invoices
• Policy documents

11. Impact on claims and benefits

• Claim process and benefits remain unchanged.
• Only payable premium reduces.
• Claims are not admissible during break-in.

Example: If a policy ends on 15-Sep-2025 and is renewed on 24-Sep-2025, no claims can be made for the gap period (16–23 Sep).