Insurance Stocks Rally: LIC, SBI Life, HDFC Life Shine on GST Reform Hopes

The GST Council’s Group of Ministers (GoM) has supported the Centre’s plan to exempt individual life and health insurance premiums from GST. Currently, these premiums are taxed at 18%. The GST Council will make the final decision after discussions with the states.

Share Market Reaction

Following the news, insurance stocks saw a sharp rise:

• SBI Life share price gained 1.7%
• HDFC Life share price rose 1.31%
• ICICI Lombard share price added 1.28%
• ICICI Prudential share price climbed 1.53%
• LIC share price rose 1.91%
• GIC Re share price advanced 2.75%

Other insurers also rallied, with Star Health up 3.02%, Go Digit 2.03%, and Niva Bupa 4.46%.

Read More: Brightcom Group Share Price in Focus as Q1 FY26 Results Show Strong Growth, Defence Division Announced.

Part of GST 2.0 Reforms

The move comes under the broader GST 2.0 reforms announced by PM Modi, which aim to simplify the tax structure into two slabs — 5% and 18% — along with a 40% “sin tax” for luxury items.

Conclusion

If approved, the exemption of GST on life and health insurance premiums will make policies cheaper and more attractive for buyers, while boosting growth prospects for insurers.

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