Seeks to amend Notification No 9/2017-Integrated Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council.
This notification, dated September 17, 2025, amends the Integrated Goods and Services Tax (IGST) to implement recommendations from the 56th GST Council meeting. The changes primarily focus on exempting certain insurance services from IGST. The new rules introduce exemptions for life and health insurance services provided to individuals and their families. This exemption does not extend to group insurance plans. The document clarifies that this applies to contracts where the insured is an individual or an individual and their family, with the family including all members listed in the insurance contract. Furthermore, the notification also grants an exemption for the reinsurance of these newly exempted life and health insurance services. The goal of these amendments is to provide relief to individual policyholders by making these services more accessible.
In addition to the insurance-related exemptions, the notification provides a new definition for “goods transport agency.” It specifies that this term does not include electronic commerce operators that provide or facilitate local delivery services. This clarification is intended to address the tax treatment of delivery services by these platforms. The notification also defines “group” for the purpose of the insurance exemptions, specifying that it includes employer-employee groups and other non-employer groups that have a common purpose or economic activity other than availing insurance. A definition for “health insurance business” is also included to provide clarity on the types of services that are covered by the new exemption. All these changes will come into force on September 22, 2025.
Government of India
Ministry of Finance
(Department of Revenue)
Notification No. 16/2025- Integrated Tax (Rate) | Dated: 17th September, 2025
G.S.R. 667(E).- In exercise of the powers conferred by sub-sections (3) and (4) of section 5, sub-section (1) of section 6 and section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification number 9/2017-Integrated Tax (Rate), of the Government of India, Ministry of Finance (Department of Revenue), published in the Gazette of India, Extraordinary, Part II, Section 3,Sub-section (i) vide number G.S.R. 684 (E), dated the 28th June, 2017, namely:-
In the said notification,-
(a) In the table, –
(i) against serial number 19, in column (3), after clause (b), the following explanation shall be inserted, namely:-
“Explanation. – Nothing contained in this entry shall apply to:
(i) local delivery services provided by an Electronic Commerce Operator; or
(ii) local delivery services provided through an Electronic Commerce Operator.”;
(ii) after serial number 37B and the entries relating thereto, the following serial numbers and entries relating thereto shall be inserted, namely: –
| (1) | (2) | (3) | (4) | (5) |
| “37C | Heading
9971 |
Services of life insurance business provided by an insurer to the insured, where the insured is not a group.
[Please refer to clause (zfb) in para 2] Explanation: For the removal of doubts, it is hereby clarified that: a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance. |
Nil | Nil |
| 37D | Heading 9971 | Services of health insurance business provided by an insurer to the insured, where the insured is not a group.
[Please refer to clause (zfb) in para 2] Explanation: For the removal of doubts, it is hereby clarified that: a. This exemption shall apply to a contract of insurance where the insured is an individual, or an individual and family of the said individual. b. For the purposes of (a) above, family shall include all individuals insured as family in the contract of insurance. |
Nil | Nil |
| 37E | Heading 9971 | Reinsurance of the insurance services specified in serial numbers 37C and 37D. | Nil | Nil”; |
(b) in paragraph 2,
(i) for clause (ze), the following shall be substituted, namely: –
“(ze)‘goods transport agency’ means any person who provides service in relation to transport of goods by road and issues a consignment note by whatever name called, but does not include
(i) an electronic commerce operator by whom the services of local delivery are provided,
(ii) an electronic commerce operator through whom the services of local delivery are provided”;
(ii) after clause (zfa), the following clause shall be inserted, namely:-
“(zfb) For the purposes of entries at serial numbers 37C and 37D in the table above, ‘group’ means group of persons who join together with a commonality of purpose or for engaging in a common economic activity, other than availing insurance, and includes:
a. Employer– employee groups, where an employer-employee relationship exists between the master/group policyholder and the members of the group in accordance with the applicable laws;
b. Non employer– employee groups, where a clearly evident relationship exists between the master/group policyholder and the members of the group, for services/ activities other than insurance.”;
(iii) after clause (zg), the following clause shall be inserted, namely: –
“(zga) ‘health insurance business’ means the effecting of contracts which provide for sickness benefits or medical, surgical or hospital expense benefits, whether in-patient or out-patient, travel cover and personal accident cover;”.
2. This notification shall come into force with effect from the 22nd day of September, 2025.
[F.No.190341/188/2025-TRU]
(Md. Adil Ashraf)
Under Secretary to the Government of India
Note : The principal notification number 9/2017 -Integrated Tax (Rate) was published in the Gazette of India, Extraordinary, vide number G.S.R. 684 (E), dated the 28th June, 2017 and last amended vide notification number 06/2025 -Integrated Tax (Rate) published in the Gazette of India Extraordinary, vide number G.S.R. 42(E), dated the 16th January, 2025.
