What is GST rate on LIC premium?
Asked by: Ozella McCullough Sr. | Last update: November 19, 2025Score: 4.3/5 (52 votes)
How much GST on LIC?
1) How much GST is levied on LIC premium? LIC term plans and health plans attract an 18% GST, while endowment plans and pension plans have a GST of 4.5% for the first year and 2.25% for subsequent years. ULIPs have an 18% GST on fund management and other charges, but not on the premium itself.
Is there GST on insurance premiums?
Generally, GST is charged on insurance policies other than: life insurance (these are input taxed) ■ health insurance policies (these are GST-free). Where GST is included in the insurance premium, include the price of the premium less the amount of stamp duty at G11 (non-capital purchases).
Why is there an 18 GST on health insurance in India?
18% GST is levied on the sale or renewal of health insurance to keep it at par with all other life and vehicle insurance policies in India that are not otherwise exempted, as explained in the GST rate table given in the earlier section of this article.
How to know premium amount of lic?
For Registered Users
Step 1 - Open the LIC India website and click on Online Services. Step 6 - This will lead to a page which will display all the policies you have enrolled, along with enrollment date, premium amount, and vested bonuses.
LIC Jeevan Dhara 2 , LIC Guaranteed Pension Plan, Hight Return LIC Plan
How is premium amount calculated?
Insurance premium is determined by several factors, including an insured's age, health, coverage amount, and risk profile. Premiums are determined by actuarial data and statistical models.
How to pay lic premium online from USA?
Step 1: Head to the official LIC of India website. Step 2: Find the 'Customer Portal' button and click on it. Next, tap on 'Registered User' and click on the option 'Pay LIC Premium Online'. Step 3: Plug in information like your user ID, mobile number, email ID, password, date of birth and sign in.
How much is GST on healthcare in India?
GST rates on healthcare services
Healthcare services provided by clinical establishments, authorised medical practitioners, and paramedics are generally exempt from GST. Certain healthcare-related services, such as room rent for hospitals above Rs. 5000 per day, attract a GST of 5%.
What is 18 GST?
How do you calculate 18% GST on the total? To calculate 18% GST on the total, you simply multiply the total amount by 18% (or 0.18). For example, if the total amount is Rs. 1000, the GST amount would be Rs. 180 (1000 x 0.18). How do I calculate my GST?
How many types of GST are there in India?
The types of GST include CGST, SGST, UTGST and IGST. There is sometimes a cess also levied. What are the taxes levied on an intra-state supply? CGST and respective SGST are the taxes levied on an intra-state supply.
What is GST on insurance premium in India?
The GST rate for term insurance plans is 18%. This is applicable to the total premium amount. Unit Linked Insurance Plans (ULIPs) are subject to a GST rate of 18%. This is applied to various charges, including fund management fees.
What are GST free expenses?
GST-free expenses are transactions where GST is not charged. These include certain goods and services that are exempt from GST under Australian tax law. Some common examples include: Most basic food items. Some medical and health services.
When can ITC be claimed?
Where the goods are received in lots or instalments, ITC will be allowed to be availed when the last lot or instalment is received. The buyer must pay towards the supply of goods and/or services within 180 days from the invoice date.
How to calculate GST?
GST calculation can be explained by a simple illustration : If a goods or services is sold at Rs. 1,000 and the GST rate applicable is 18%, then the net price calculated will be = 1,000+ (1,000X(18/100)) = 1,000+180 = Rs. 1,180.
Is life insurance taxable in India?
If the premium that you paid for a life insurance policy is less than 10% of the total sum assured and the policy was issued after 1st April 2012, then the amount received on maturity/ surrender or death is completely tax-exempt under Section 10(10D) of the Income Tax Act.
What is the late fee waiver for LIC premium?
Under this scheme, LIC India has decided to provide up to a 30% of rebate in late premium charges. If the payment of LIC premium is from 1 lakh to 3 lakhs, then the LIC lapsed policyholders will be provided a 25% rebate. In case if the annual premium is above Rs 300001, then the insurer provides a 30% of rebate.
What is the GST rate in India?
Goods and services in India fall under different GST slabs: 0% for essential items, 5% for basic necessities, 12% for standard goods, 18% for most consumer products, and 28% for luxury and sin goods. Each slab is designed to categorise goods and services according to necessity and luxury.
How to calculate GST from a total?
- GST amount = (Price x GST%)
- Net price = Cost of the product + GST amount.
- GST= Original cost – [Original cost x {100/(100+GST%)}]
- Net price = Original cost – GST.
How to calculate GST on brokerage?
The GST rate applicable to commission agents and brokers in India is generally 18%. This rate is charged on the total commission or brokerage earned for their services.
Is health insurance GST free in India?
Specific health insurance schemes catering to the needs of economically weaker sections of the society and differently abled, such as Rashtriya Swasthya Bima Yojana (RSBY), Universal Health Insurance Scheme, Jan Argoya Bima Policy and Niramaya Health Insurance Scheme are fully exempt from GST.
Can US citizens take LIC policy?
Ans: Yes, NRI's living abroad are eligible to buy LIC Policy. Also, Foreign Nationals of Indian Origin, People of Indian Origin, and Green Card Holders can buy a LIC policy.
What if I stop paying LIC premium after 3 years?
If the policy has run for atleast 3 full years and subsequent premiums have not been paid the policy shall not be void but the sum assured will be reduced to a sum which will bear the same ratio as to the number of premiums paid bear to the total number of premiums payable.
Can OCI buy life insurance in India?
All eligible NRIs, OCIs/PIOs, and Foreign Nationals can purchase NRI insurance policies in India.