GST Rate on Insurance premium
The GST rate on insurance premium is 18%, under SAC code 997159 (insurance services (general, life, health)). Here is the full breakdown, a worked example, and related rates in Services.
GST rate breakdown for insurance premium
- GST rate: 18%
- Intra-state: 9% CGST + 9% SGST
- Inter-state: 18% IGST
- SAC code on the invoice: 997159
- Also covers: general insurance, health insurance
Rates reflect the GST 2.0 structure effective 22 September 2025 (slabs 0%, 5%, 18%, 40%). Confirm the current rate on the official GST portal before invoicing.
Worked example: GST on insurance premium
- Taxable value: ₹10,000
- GST (18%): ₹1,800
- Within state: ₹900 CGST + ₹900 SGST
- To another state: ₹1,800 IGST
- Invoice total: ₹11,800
FAQs about GST on insurance premium
What is the GST rate on insurance premium?
The GST rate on insurance premium is 18%. Intra-state it is 9% CGST + 9% SGST; inter-state it is 18% IGST. Insurance premium falls under SAC code 997159.
What is the HSN code for insurance premium?
Insurance premium falls under SAC code 997159, which covers insurance services (general, life, health). Show this code on every GST tax invoice line for insurance premium.