New GST Rates for Insurance Sector put stocks in limelight as Star Health surges over 9 percent

Insurance stocks had been in heavy demand on Thursday (September 4, 2025), with Star Health surging over 9%, as life insurance coverage and medical insurance premia would come down as such merchandise are actually exempt from items and companies tax (GST).

Announcing the end result of 56th GST Council assembly, Finance Minister Nirmala Sitharaman on Wednesday (September 3, 2025) mentioned all particular person life insurance coverage insurance policies, whether or not time period life, ULIP or endowment insurance policies and subsequent reinsurance are exempt from GST.

Shares of Star Health and Allied Insurance Company skyrocketed 9.35%, Niva Bupa Health Insurance Company zoomed 9%, ICICI Prudential Life Insurance Company jumped 5.70%, ICICI Lombard General Insurance Company rallied 5%, Life Insurance Corporation of India climbed 5%, HDFC Life Insurance Company went up 4.90% and SBI Life Insurance Company surged 4.88% on the BSE.

“While the direct beneficiaries include consumer, auto, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs,” Rahul Singh, CIO-Equities, Tata Asset Management, mentioned.

All particular person medical insurance insurance policies, together with household floater insurance policies and insurance policies for senior residents and reinsurance thereof can even be exempt from GST, she mentioned.

Since its inception in July 2017, GST on the fee of 18% is levied on premium paid in the direction of medical insurance and life insurance coverage.

(*9*) she mentioned.

She additional mentioned the brand new charges could be efficient from September 22, the primary day of Navratri.

“Some of the key sectors that stand to benefit from this are insurance, FMCG, automobiles, agriculture equipment, cement, consumer durables, apparel, footwear, QSR, and retail,” Pranav Haridasan, MD and CEO, Axis Securities, mentioned.