LIC MD seeks GST exemption for insurance premium to avail input tax credit
This story was originally published at 16:40 IST on 17 November 2025
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MUMBAI – Life Insurance Corp. of India Ltd. Monday called for insurance premiums to be exempted from goods and services tax. LIC's Managing Director Ratnakar Patnaik thanked the authorities for making insurance premiums a zero-tax product but said exempting them from GST would help companies to avail input tax credit.
Patnaik was addressing panellists and government officials at the Confederation of Indian Industry's Financing Summit in Mumbai. Starting Sept. 22, premiums for all individual life and health insurance policies attract 0% GST but are not in the "exempt" category.
Further, Patnaik noted that India's insurance sector currently contributes only 2.8% to the country's GDP. "Whereas it is 9.2% in South Africa, Singapore does more than 7%, Taiwan 7%, even Japan is 6.8%. So is the case with the insurance density," he said. End
Reported by Anand JC and Shakshi Jain
Edited by Rajeev Pai
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