GST Slash Hopes Rise | Impact on Insurance Stocks & Policy Premiums Explained

With the GST Council expected to take a final call next month, the life and health insurance space could witness a major shift. If GST on insurance premiums is reduced, it could make policies more affordable, boosting demand among consumers. Experts are bullish on HDFC Life, SBI Life, and Star Health, expecting strong growth if the cut comes through. But there’s a twist — the industry prefers a 5% GST rate instead of zero to retain input tax credit benefits. Lower GST could also improve consumption and ease household budgets.