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Since September 2025, the government has completely removed GST on individual health insurance premiums. That’s 18% gone — off your Star Health premium, with no paperwork or special application needed.
If you’re buying a new policy or renewing an existing one, here’s exactly what changed, who qualifies, and what it means in actual savings
Until September 2025, an 18% Goods and Services Tax was added to every health insurance premium in India. So if your base premium was ₹20,000, you were actually paying ₹23,600 — the extra ₹3,600 going as tax.
This made health insurance noticeably more expensive, particularly for senior citizens whose premiums are already higher. Many families in Kerala held off on buying or upgrading their coverage because of this added cost.
At the 56th GST Council meeting on September 3, 2025, Finance Minister Nirmala Sitharaman announced a full exemption on GST for individual health insurance policies. Effective September 22, 2025, no GST applies to individual health insurance premiums — the rate dropped from 18% to 0%.
The decision was unanimous across all state finance ministers and was aimed at making healthcare coverage more accessible for individuals and families, especially with medical costs continuing to rise across India.
The GST exemption covers:
● Individual health insurance plans
● Family floater plans
● Senior citizen health insurance plans
● Policies that lapsed and were reinstated on or after September 22, 2025
Group health insurance — plans provided through an employer or a bank — is not included. Those policies continue to attract 18% GST.
For most people in Calicut and Kerala buying a Star Health plan for themselves or their family, the exemption applies.
The saving depends on your base premium. The table below uses illustrative figures to show the difference. (Actual premiums vary by age, cover amount, and plan.)
Plan Type | Base Premium (Example) | Old Total with 18% GST | New Total — No GST | Annual Saving |
Individual – ₹5L cover | ₹10,000 | ₹11,800 | ₹10,000 | ₹1,800 |
Family Floater – ₹10L cover | ₹22,000 | ₹25,960 | ₹22,000 | ₹3,960 |
Senior Citizen – ₹10L cover | ₹45,000 | ₹53,100 | ₹45,000 | ₹8,100 |
For a senior citizen paying a higher premium, that saving of ₹8,000+ per year is significant. And because it’s a direct reduction in what you pay — not a reimbursement — you benefit from day one of the new policy or renewal.
Yes. If your renewal payment is made on or after September 22, 2025, no GST applies — regardless of when the original policy was bought. The government clarified that the payment date determines whether the exemption applies, not the policy issue date or invoice date.
If your Star Health policy renewed any time after September 2025, you should already be paying the GST-free premium. If you’re unsure whether your insurer has applied the exemption correctly, it’s worth checking your renewal notice.
Yes, Section 80D deductions remain unchanged. You can still claim a deduction on your health insurance premium under Section 80D of the Income Tax Act — up to ₹25,000 for yourself and family, and up to ₹50,000 if you’re paying for a senior citizen parent.
The GST exemption reduces what you pay out of pocket. Section 80D reduces your taxable income. Both benefits work together.
As of September 22, 2025, there is no GST on individual health insurance premiums in India. The rate was reduced from 18% to 0% following the 56th GST Council meeting. This applies to new policies, renewals, and reinstated policies, provided the premium is paid on or after September 22, 2025.
Yes. All individual Star Health plans — including individual, family floater, and senior citizen policies — qualify for the GST exemption. If you're buying through an authorized Star Health advisor in Calicut or anywhere in Kerala, your premium will not include GST.
If your renewal payment is due on or after September 22, 2025, your premium will not include the 18% GST that you may have paid in previous years. The base premium itself doesn't automatically change, but the removal of GST brings your total outflow down meaningfully.
No. Group health insurance policies — whether provided by an employer or offered through a bank — continue to attract 18% GST. The exemption is limited to individual policies, family floaters, and senior citizen plans.