As you may be aware, starting from July 1, 2017 the Goods and Services Tax (GST) is proposed to replace all indirect taxes like Service Tax and Cess.
The introduction of the GST by the Government of India is a significant step in implementing a uniform indirect taxation system in India.
Please make a note of GST rates that will be applicable, depending on your policy type.
To know more, please click here.
| Product Type | Applicable On | Service Tax & Cess (Current) | GST (Proposed) |
|---|---|---|---|
| Term Policy | Premium payable | 15% | 18% |
| Term Policy | Premium Payable | 15% | 18% |
| Unit Linked Insurance Policy | Charges i.e. FMC Charges | 15% | 18% |
| Riders | Premium Payable i.e. Accidental Death Benefit Rider | 15% | 18% |
| Health Insurance Policy | Premium Payable | 15% | 18% |
| Endowment Policy | First Premium | 3.75% | 4.50% |
| Endowment Policy | Premium Payable i.e. Regular Premium | 1.88% | 2.25% |
| Single Premium Annuity Policy | Premium Payable | 1.50% | 1.80% |
New GST rate on your policies
| Type of Product | Existing Rate | New Rate | |||
|---|---|---|---|---|---|
| Type | NB | Renewal | NB | Renewal | |
| IndiaFirst Immediate Annuity | Annuity | 1.50% | NA | 1.80% | NA |
| Guaranteed Retirement Plan | Endownment | 3.75% | 1.88% | 4.50% | 2.25% |
| IndiaFirst Maha Jeevan Plan | Endownment | 3.75% | 1.88% | 4.50% | 2.25% |
| IndiaFirst Simple Benefit Plan | Endownment | 3.75% | 1.88% | 4.50% | 2.25% |
| IFL CSC Jeevan Shubhlabh Plan | Term Plan | 15% | 15% | 18% | 18% |
| IndiaFirst Anytime Plan | Term Plan | 15% | 15% | 18% | 18% |
| IndiaFirst INSURANCE KHATA | Term Plan | 15% | 15% | 18% | 18% |
| IndiaFirst Life Plan | Term Plan | 15% | 15% | 18% | 18% |
| IndiaFirst Mediclaim Plan | Term Plan | 15% | 15% | 18% | 18% |
| IFL MoneyBack Health Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Happy India Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Money Balance Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Smart Save Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Young India Plan | ULIP | 15% | 15% | 18% | 18% |
| India First Cash Back Plan | Endownment | 3.75% | 1.88% | 4.50% | 2.25% |
| IndiaFirst Education Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Future Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst High Life Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Life Cash Back Plan | Endownment | 3.75% | 1.88% | 4.50% | 2.25% |
| IndiaFirst Savings Plan | ULIP | 15% | 15% | 18% | 18% |
| IndiaFirst Secure Save Plan | Endownment | 3.75% | 1.88% | 4.50% | 2.25% |
| IndiaFirst Wealth Maximizer | ULIP | 15% | 15% | 18% | 18% |
| Star First Care | Term Plan | 15% | 15% | 18% | 18% |
| Star First Classic | Term Plan | 15% | 15% | 18% | 18% |
| Star First Optima | Term Plan | 15% | 15% | 18% | 18% |
| Star Plus Comprehensive | Term Plan | 15% | 15% | 18% | 18% |
Note
- In case of ULIP- GST will be applicable only on charges and not on entire premium
- In case of Khata-SA upto 50,000- GST Nil
- In case of Khata-SA more than 50,000- GST 18%
