GST on LIC Policy - GST rates for LIC insurance plans
GST (Goods and Services Tax) is going to live from July 1st, 2017 and it has a big impact on all insurance policies sold by LIC. This article explains the applicable GST rate on LIC policy from July 1st 2017 and what has changed.
GST on LIC Policy
Below table provides the details of different LIC policy and applicable GST rate.
| LIC Policy | GST Rate | Old Rate |
|---|---|---|
| Term Insurance Plans | 18% | 15 % |
| Health Insurance Plans | 18% | 15% |
| ULIP (Unit Linked Insurance Plans) | 18% | 15% |
| Other Life and Pension Policy (1st year) | 4.5% | 3.75% |
| Other Life and Pension Policy (2nd year) | 2.25% | 1.875% |
| Single Premium Annuity Products | 1.8% | 1.5% |