GST on Insurance: Impact on Insurance Premium

GST: Learn about Goods and Services Tax

As you may be aware, the Goods and Services Tax (GST) has replaced all indirect taxes like Service Tax and Cess from July 1, 2017. The introduction of the GST by the Government of India is a significant step in implementing a uniform indirect taxation system in India.

Details of GST rates that will be applicable are mentioned below:

Product Type	Applicable on	GST (July 1, 2017 onwards)
Term Policy	Premium payable	18%
Unit Linked Insurance Policy	All applicable charges	18%
Riders	Premium Payable i.e. Accidental Death Benefit Rider	18%
Health Insurance Policy	Premium Payable	18%
Endowment Policy	First Premium	4.50%
Endowment Policy	Premium Payable i.e. Regular Premium	2.25%
Single Premium Annuity Policy	Premium Payable	1.80%

Income Tax Calculator

Answers to commonly asked questions on GST

1. What is the applicable GST rate on my Policy?

The applicable rate on each product has been listed below:

#	Product code	Product Name	GST
1	E15	ICICI Pru Anmol Bachat -RP	0%
2	E10	ICICI Pru Cash Advantage	2.25%
3	U96	ICICI Pru Easy Retirement	18.00%
4	U97	ICICI Pru Easy Retirement -SP	18.00%
5	ED1	ICICI Pru EDLI (Employee Deposit Linked Insurance plan)	18.00%
6	2	ICICI Pru Endowment Superannuation	18.00%
7	T41	ICICI Pru iCare II RP Option II	18.00%
8	T38	ICICI Pru iCare II RP Option I	18.00%
9	T39	ICICI Pru iCare II RP Option I	18.00%
10	U85	ICICI Pru Elite Life	18.00%
11	U86	ICICI Pru Elite Life	18.00%
12	U87	ICICI Pru Elite Wealth	18.00%
13	U88	ICICI Pru Elite Wealth	18.00%
14	T33	ICICI Pru Home Protect	18.00%
15	E06	ICICI Pru iAssure Single Premium	2.25%
16	T31	ICICI Pru iCare Regular Premium	18.00%
17	T32	ICICI Pru iCare Regular Premium	18.00%
18	T29	ICICI Pru iCare Single Premium	18.00%
19	T30	ICICI Pru iCare Single Premium	18.00%
20	U89	ICICI Pru Invest Easy	18.00%
21	U92	ICICI Pru Pinnacle Super	18.00%
22	U93	ICICI Pru Pinnacle Super	18.00%
23	E11	ICICI Pru Saving Suraksha	2.25%
24	E12	ICICI Pru Saving Suraksha	2.25%
25	U94	ICICI Pru Shubh Retirement	18.00%
26	U95	ICICI Pru Shubh Retirement SP	18.00%
27	UA8	ICICI Pru Smart Life RP	18.00%
28	UA9	ICICI Pru Smart Life SP	18.00%
29	U75	ICICI Pru Ace	18.00%
30	E19	ICICI Pru Anmol Bachat	0%
31	E20	ICICI Pru Anmol Bachat- SP*	0%
32	U57	ICICI Pru Anmol Nivesh	18.00%
33	S51	ICICI Pru Assure Invest	2.25%
34	S52	ICICI Pru Assure Invest	2.25%
35	S53	ICICI Pru Assure Invest	2.25%
36	S71	ICICI Pru Assure Invest	2.25%
37	S72	ICICI Pru Assure Invest	2.25%
38	S73	ICICI Pru Assure Invest	2.25%
39	SX1	ICICI Pru Assure Invest	2.25%
40	SX2	ICICI Pru Assure Invest	2.25%
41	SX3	ICICI Pru Assure Invest	2.25%
42	U60	ICICI Pru Assure Life	18.00%
43	U70	ICICI Pru Assure Pension	18.00%
44	U72	ICICI Pru Assure Wealth	18.00%
45	U73	ICICI Pru Assure Wealth	18.00%
46	T11	ICICI Pru Cancer Care	18.00%
47	T15	ICICI Pru Cancer Care Plus	18.00%
48	A01	ICICI Pru Cash Back	2.25%
49	A02	ICICI Pru Cash Back	2.25%
50	U12	ICICI Pru CashPlus & CashPlus New	18.00%
51	T16	ICICI Pru Crisis Cover	18.00%
52	C02	ICICI Pru Credit Assure - Auto Loan - 2 wheeler	18.00%
53	C01	ICICI Pru Credit Assure - Auto Loan - 4 wheeler	18.00%
54	C05	ICICI Pru Credit Assure - Commercial Vehicle	18.00%
55	C06	ICICI Pru Credit Assure - Education Loan	18.00%
56	C07	ICICI Pru Credit Assure - Education Loan	18.00%
57	C04	ICICI Pru Credit Assure - Personal Loan	18.00%
58	C03	ICICI Pru Credit Assure - Small Ticket Personal Loan	18.00%
59	T18	ICICI Pru Diabetes Assure	18.00%
60	T14	ICICI Pru Diabetes Care	18.00%
61	T17	ICICI Pru Diabetes Care Active	18.00%
62	T13	ICICI Pru Diabetes Care Plus	18.00%
63	T04	ICICI Pru Easy Life	18.00%
64	U62	ICICI Pru Elite Pension	18.00%
65	U65	ICICI Pru Elite Pension II	18.00%
66	D02	ICICI Pru Forever Life RP	2.25%
67	D04	ICICI Pru Forever Life RP	2.25%
68	D03	ICICI Pru Forever Life SP*	4.50%
69	E21	ICICI Pru Future Perfect	2.25%
70	E03	ICICI Pru Future Secure	2.25%
71	U35	ICICI Pru Golden Years	18.00%
72	U36	ICICI Pru Golden Years	18.00%
73	GL1, GL2	ICICI Pru Group Loan Secure	18.00%
74	GT4	ICICI Pru Group Term Plus	18.00%
75	GT5/ED5	ICICI Pru Group Term Plus	18.00%
76	E05	ICICI Pru Guaranteed Savings Insurance Plan	2.25%
77	T10	ICICI Pru Health Assure	18.00%
78	T09	ICICI Pru Health Assure Plus	18.00%
79	U56	ICICI Pru Health Saver	18.00%
80	HSSS	ICICI Pru Health Saver	18.00%
81	T48	ICICI Pru Heart/Cancer Protect	18.00%
82	T49	ICICI Pru Heart/Cancer Protect	18.00%
83	M01	ICICI Pru Home Assure	18.00%
84	M02	ICICI Pru Home Assure	18.00%
85	M03	ICICI Pru Home Assure	18.00%
86	T12	ICICI Pru Hospital Care	18.00%
87	T22	ICICI Pru Hospital Care II	18.00%
88	I01	ICICI Pru Immediate Annuity	1.80%
89	I02	ICICI Pru Immediate Annuity	1.80%
90	I04	ICICI Pru Immediate Annuity	1.80%
91	I05	ICICI Pru Immediate Annuity	1.80%
92	U28	ICICI Pru InvestShield Cash	18.00%
93	U47	ICICI Pru InvestShield Cashback	18.00%
94	U34	ICICI Pru InvestShield Gold	18.00%
95	U29	ICICI Pru InvestShield Life	18.00%
96	U46	ICICI Pru InvestShield Life New	18.00%
97	U30	ICICI Pru InvestShield Pension	18.00%
98	T24	ICICI Pru iProtect	18.00%
99	T25	ICICI Pru iProtect	18.00%
100	T26	ICICI Pru iProtect	18.00%
101	T27	ICICI Pru iProtect	18.00%
102	T01	ICICI Pru LifeGuard	2.25%
103	T02	ICICI Pru LifeGuard SP	18.00%
104	T03	ICICI Pru LifeGuard WROP	18.00%
105	UL2	ICICI Pru LifeLink - 105% Death Benefit	18.00%
106	UL7	ICICI Pru LifeLink - 105/500% Death Benefit	18.00%
107	U20	ICICI Pru LifeLink II 105 & 500% Death Benefit	18.00%
108	UL5	ICICI Pru LifeLink Pension	18.00%
109	UL9	ICICI Pru LifeLink Pension	18.00%
110	U22	ICICI Pru LifeLink Pension II	18.00%
111	U81	ICICI Pru LifeLink Pension SP	18.00%
112	U37	ICICI Pru LifeLink Super	18.00%
113	U44	ICICI Pru LifeLink Super Pension	18.00%
114	U76	ICICI Pru LifeLink Wealth SP	18.00%
115	U54	ICICI Pru LifeStage Assure	18.00%
116	U59	ICICI Pru LifeStage Assure Pension	18.00%
117	U49	ICICI Pru LifeStage Pension	18.00%
118	U66	ICICI Pru LifeStage Pension Advantage	18.00%
119	U48	ICICI Pru LifeStage RP	18.00%
120	U74	ICICI Pru LifeStage Wealth	18.00%
121	U80	ICICI Pru LifeStage Wealth II	18.00%
122	UL1	ICICI Pru LifeTime	18.00%
123	UL6	ICICI Pru LifeTime	18.00%
124	U06	ICICI Pru LifeTime	18.00%
125	U53	ICICI Pru LifeTime Gold	18.00%
126	U19	ICICI Pru LifeTime II	18.00%
127	U64	ICICI Pru LifeTime Maxima	18.00%
128	UL4	ICICI Pru LifeTime Pension	18.00%
129	UL8	ICICI Pru LifeTime Pension	18.00%
130	U08	ICICI Pru LifeTime Pension	18.00%
131	U10	ICICI Pru LifeTime Pension	18.00%
132	U21	ICICI Pru LifeTime Pension II	18.00%
133	U67	ICICI Pru LifeTime Pension Maxima	18.00%
134	U38	ICICI Pru LifeTime Plus	18.00%
135	U78	ICICI Pru LifeTime Premier	18.00%
136	U79	ICICI Pru LifeTime Premier	18.00%
137	U39	ICICI Pru LifeTime Super	18.00%
138	U40	ICICI Pru LifeTime Super Pension	18.00%
139	T19	ICICI Pru MediAssure	18.00%
140	U63	ICICI Pru Pinnacle	18.00%
141	U77	ICICI Pru Pinnacle II	18.00%
142	U83	ICICI Pru Pinnacle Super	18.00%
143	U84	ICICI Pru Pinnacle Super	18.00%
144	U26	ICICI Pru Premier Life	18.00%
145	U27	ICICI Pru Premier Life	18.00%
146	U42	ICICI Pru Premier Life Gold	18.00%
147	U43	ICICI Pru Premier Life Gold	18.00%
148	U51	ICICI Pru Premier Life Pension	18.00%
149	U52	ICICI Pru Premier Life Pension	18.00%
150	U71	ICICI Pru Premier Wealth	18.00%
151	T20	ICICI Pru Pure Protect	18.00%
152	T21	ICICI Pru Pure Protect	18.00%
153	V51	ICICI Pru ReAssure	2.25%
154	V52	ICICI Pru ReAssure	2.25%
155	V71	ICICI Pru ReAssure	2.25%
156	V72	ICICI Pru ReAssure	2.25%
157	MT2	ICICI Pru Sarv Jana Suraksha	0%
158	MT1	ICICI Pru Sarvjan Suraksha	18.00%
159	E01	ICICI Pru Save and Protect	2.25%
160	E00	ICICI Pru Save and Protect Mass	2.25%
161	E02	ICICI Pru Save and Protect Rural	2.25%
162	S03	ICICI Pru Save n Protect SP *	4.50%
163	U11	ICICI Pru Secure Plus	18.00%
164	U16	ICICI Pru Secure Plus	18.00%
165	U18	ICICI Pru Secure Plus Pension	18.00%
166	U13	ICICI Pru SecurePlus Pension	18.00%
167	U58	ICICI Pru SecureSave	18.00%
168	S01	ICICI Pru Single Premium Bond	2.25%
169	S02	ICICI Pru Single Premium Bond	2.25%
170	U69	ICICI Pru SmartKid Assure	18.00%
171	U68	ICICI Pru SmartKid Maxima	18.00%
172	U41	ICICI Pru SmartKid New ULRP II	18.00%
173	U45	ICICI Pru SmartKid New ULSP	18.00%
174	U82	ICICI Pru SmartKid Premier	18.00%
175	A03	ICICI Pru SmartKid RP	2.25%
176	U14	ICICI Pru SmartKid ULRP	18.00%
177	U23	ICICI Pru SmartKid ULRP II	18.00%
178	U15	ICICI Pru SmartKid ULSP	18.00%
179	U24	ICICI Pru SmartKid ULSP II	18.00%
180	T06	ICICI Pru Suraksha RP	18.00%
181	T07	ICICI Pru Suraksha SP	18.00%
182	T08	ICICI Pru Surakshakavach	18.00%
183	ADBT	ICICI Pru Unit Linked Accidental Death Rider	18.00%
184	U55	ICICI Pru Wealth Advantage	18.00%
185	U91	ICICI Pru Wealth Builder	18.00%
186	E04	ICICI Pru Whole Life	2.25%
187	T47	ICICIPru iProtect Smart Regular and Limited Premium	18.00%
188	T46	ICICIPru iProtect Smart Single Premium	18.00%
189	T43	ICICIPru Life Raksha	18.00%
190	T44	ICICIPru Loan Protect Plus	18.00%
191	T45	ICICIPru Loan Protect Plus	18.00%
192	T23	ICICIPru Fullerton Group Term	18.00%
193	T28	ICICIPru Fullerton Group Term 2	18.00%
194	GS1	ICICIPru Group Superannuation 1	18.00%
195	GS2	ICICIPru Group Superannuation 2	18.00%
196	G01	ICICIPru Group Term Rural	18.00%
197	E18	IPRU Assured Savings Investment Plan	2.25%
198	UA2	IPRU Elite Life II	18.00%
199	UA1	IPRU Elite Life II - SP	18.00%
200	UA4	IPRU Elite Wealth II	18.00%
201	UA3	IPRU Elite Wealth II - SP	18.00%
202	U98	IPRU Guaranteed Wealth Protector RP	18.00%
203	U99	IPRU Guaranteed Wealth Protector SP	18.00%
204	T37	IPRU Loan Protect	18.00%
205	UA6	IPRU Wealth Builder II	18.00%
206	UA5	IPRU Wealth Builder II- SP	18.00%
207	3	Leave encashment	18.00%
208	LEIS	Lave Encashment	18.00%
209	T36	Loan Protect	18.00%
210	T35	Loan Protect- FP-Mortgage	18.00%
211	T34	Loan Protect- SP-Mortgage	18.00%

Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.

*Rate as applicable for Single premium - Endowment products

2. What is the Goods and Services Tax?

The Goods and Services Tax (GST) is an integrated tax, merging most of the existing indirect taxes such as Service Tax, VAT etc into a single system of taxation. GST works on the concept of “One Nation One Tax”. This is one of the biggest tax reforms in India since Independence and has been implemented since July 1, 2017.

3. What are the benefits of GST?

Implementation of GST is expected to reduce costs substantially, especially in the manufacturing sector, the benefits of which could cascade into other sectors in the long run. It is also anticipated to bring in more transparency, automation and simplification in tax compliance.

4. From when will GST be made applicable?

GST has been brought into effect from July 1, 2017.

5. Is GST payable on the premium of all my Insurance Policies?

Yes, except for insurance plans like the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) in which the indirect tax exemption is expected to be continued.

6. Is GST applicable only on Insurance Policies?

No, GST is applicable for all goods and services except those which are specifically exempted.

7. Is GST in addition to the existing taxes I am paying on my Insurance Policies?

GST is an indirect tax which replaces the current service tax & cess on premiums.

8. Will I have a view of the GST component I am paying in my Premium?

Yes. The details of GST paid by you on premiums would be disclosed separately on the premium receipts given to you.

9. If I pay my premium in advance, will GST still apply to me?

If you are paying the premium for a policy for which the premium is overdue or due for payment till June 30, 2017, then GST will not be applicable to you.

If your policy premium was due for payment on or after July 1, 2017, then GST will be applicable on your premium. In case you paid the premium in advance, the balance amount due if any, on account of GST will have to be paid after the GST implementation date.

Disclaimers

^{^} Tax benefits under the policy are subject to conditions and provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.

Comp/doc/Jan/2018/0761