GST is now ‘Grand Seniors Treat’ment, thanks to Exemption on

‘Zero’ is poised to add some quality years to seniors’ life

New Delhi/ Bengaluru: It is time for a toast for seniors’ community as GST reform has proved a godsend for them. In one fell swoop, zero GST on health insurance premiums has taken the weight off seniors’ shoulders to their great relief. These premiums burdened them most because seniors had to pay the steepest thanks to GST. The exemption will go a long way to help them age well. From Setember 22 onwards, seniors are poised to take a long sigh of relief.

It is also time of celebrations for those organizations which toil day in and day out to make seniors’ lives better. One organization which deserves to cry Eureka most is VayahVikas which actively lobbied for GST exemption on health insurance premiums for senior citizens. It is all the more satisfying for this organization which boasts of great healers like Dr Devi Shetty of Narayana Health fame, Dr Alexander Thomas and Dr Srinath Reddy as its founding members because the great relief dawned on seniors quite close on the heels of its express letter to Union Finance Minister Nirmala Sitharaman. These healthcare leaders zeroed in on Mrs Sitharaman in quite earnest to impress upon her the urgent need of doing away with GST on health insurance premiums.

Sample how GSTs on health insurance premiums are oppressive on them. Any senior seeking for rupees 10 lakh cover has to pay annual premiums of Rs 1 (one) lakh containing staggering 18, 000 rupees as its GST component. Think of this huge GST amount disappearing post September 22 ! Dr Thomas said, ‘It will infuse great confidence into seniors and will certainly add years to their lives. This relief has come as a life saver for seniors. This has touched lives of seniors the most giving them confidence to age well.

Kris Gopalkrishnan, chairman, Vayah Vikas in a letter on August 21, 2025 to Union Finance Minister Nirmala Sitharaman earnestly appealed for this exemption. VayahVikas was on it for a long time and actively lobbied for it. The letter stressed upon increasing health needs of elders and their limited financial security. The letter said, ‘ Health insurance is often the only means by which seniors can access timely and quality healthcare. However the current levy of GST on premiums creates a significant financial burden, making policies unaffordable for many.

We submit that health insurance for senior citizens should be treated as a social necessity, not taxable commodity.

The letter further said, Removing GST on these premiums would ease financial strain and their families, Encourage Higher uptake of health insurance, reducing the out of pocket healthcare expenditure burden, support govt’s commitment to inclusive healthcare and social security for all

GST being turned to zero not only benefits seniors, it will have far reaching positive effects on healthcare as a whole. It will encourage adoption and savings and allow new products in the low cost segment. Dheera Khatore, CEO, AACI (American Accreditation Commission International) who is vibing with lot of hospital officials these days vouched for great enthusiasm this zero GST on health insurance premiums has generated.

Dr Khatore said, ‘ Insurers are looking at windfall of business. They expect that change would help households take a step toward financial and medical security and speed the push for Insurance for all by 2047. First time buyers, discouraged earlier because of heavy GST component, will feel easy to adopt. Insurers are saying that the government has indeed opened doors for wider adoption, especially in small towns,.’