Massive GST relief on health and life insurance, Rs 1800 reduction on Premium of Rs 10000, NO GST on THESE 33 medicines

New Delhi: In a major relief to the common people, the Modi government on Wednesday decided to reduce GST rates on commonly used products such as soap, bicycles, TVs, and health and life insurance policies. Giving relief to the public, the GST Council has completely exempted several items from GST, including health and life insurance. Currently, insurance services attract 18 percent GST.

Union Finance Minister Nirmala Sitharaman, after the 56th meeting of the GST Council, announced that no GST will be levied on insurance services. With this change, all individual life insurance policies, including term life, ULIPs, and endowment plans, will fall under the zero-GST category.

Soon after the meeting, the finance minister said that removing GST on insurance will make it more affordable for the common man. This will help expand insurance coverage across the country. If a consumer currently has to pay Rs 11,800 as premium, they will now have to pay only Rs 10,000. This will result in a direct saving of Rs 1,800 on the premium.

The government also announced Zero GST on 33 life-saving drugs.

Here’s the list of 33 life-saving drugs with GST cut to nil from 12 percent, per the 56th GST Council (effective Sep 22, 2025):

1. Onasemnogene abeparvovec
2. Asciminib
3. Mepolizumab
4. Pegylated Liposomal Irinotecan
5. Daratumumab
6. Daratumumab subcutaneous
7. Teclistamab
8. Amivantamab
9. Alectinib
10. Risdiplam
11. Obinutuzumab
12. Polatuzumab vedotin
13. Entrectinib
14. Atezolizumab
15. Spesolimab
16. Velaglucerase Alpha
17. Agalsidase Alfa
18. Rurioctocog Alpha Pegol
19. Idursulphatase
20. Alglucosidase Alfa
21. Laronidase
22. Olipudase Alfa
23. Tepotinib
24. Avelumab
25. Emicizumab
26. Belumosudil
27. Miglustat
28. Velmanase Alfa
29. Alirocumab
30. Evolocumab
31. Cystamine Bitartrate
32. CI-Inhibitor injection
33. Inclisiran

New GST rates :

Reduced to 5 percent

  • Hair Oil, Toilet Soap, Soap Bars, Shampoos, Toothbrushes, Toothpaste: 5% (earlier 18%)
  • Bicycles: 5% (earlier 12%)
  • Tableware, Kitchenware & Household Articles: 5% (earlier 12%/18%)

Reduced to 0 percent (Nil)

  • Ultra-High Temperature (UHT) Milk: 0% (earlier 5%)
  • Chena & Paneer: 0% (earlier 5%)
  • All Indian Breads (Roti, Paratha etc.): 0% (earlier 5%)

Reduced to 5 percent (from 12 percent/18 percent)

  • Namkeen, Bhujia
  • Sauces, Pasta, Instant Noodles
  • Chocolates, Coffee, Preserved Meat, Cornflakes
  • Butter, Ghee

Reduced to 18% (from 28%)

  • Air Conditioners
  • Televisions (all sizes, earlier >32” at 28%)
  • Dishwashing Machines
  • Small Cars
  • Motorcycles (≤350cc)

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