GST on Health Care, Diagnostics and Wellness Packages: Practical Case Study for Indian Users

It depends on the type of policy. From 22 September 2025 (Notification 16/2025-CT(R), implementing the 56th GST Council decision), premiums on individual health insurance policies — including family floater and senior citizen plans — and their reinsurance are fully exempt (Nil rate). However, group or corporate-sponsored health insurance (e.g., the policy an employer buys for its workforce) is NOT covered by this exemption and continues to attract 18% GST. So a company's group medical cover for employees remains taxable, even though an individual buying their own family floater plan now pays no GST.

Yes — if provided by a clinical establishment registered under the Clinical Establishments Act or equivalent state law, or by a practitioner registered under the Indian Medicine Central Council Act (AYUSH). Such services are exempt from GST.

Yes, but at a lower rate than before. Gyms, fitness centres, salons, barbers and yoga centres are not clinical establishments and don't qualify for the healthcare exemption, but their rate dropped from 18% to 5% without ITC effective 22 September 2025 as part of the GST Council's beauty and physical well-being services rate cut. This is a mandatory rate — providers cannot opt to charge 18% with ITC instead.