Split a tax-inclusive liability insurance premium into the GST it contains and the premium before GST.
General insurance premiums in India attract GST at 18% (CGST 9% + SGST 9% for an intra-state supply, or IGST 18% for an inter-state one). In September 2025 the GST Council exempted individual life and individual health insurance, but commercial covers such as public liability, CGL, product liability and employees' compensation remain taxable at 18%. Confirm the current rate on the CBIC GST portal before relying on it.
How it works. Because 18% is charged on the premium before tax, the GST inside a tax-inclusive amount is 18/118 of it, or about 15.254%. The tool multiplies the amount you enter by that share to show the GST, and subtracts it to show the base premium.
Worked example (illustrative). A quote of ₹59,000 including GST contains ₹59,000 × 18/118 = ₹9,000 of GST, so the base premium is ₹50,000. Check the other way: ₹50,000 × 18% = ₹9,000, and ₹50,000 + ₹9,000 = ₹59,000.
Input tax credit. A GST-registered business can usually claim input tax credit on a liability premium used for its business, provided the invoice shows its GSTIN and the credit is not blocked under section 17(5) of the CGST Act, 2017 (which blocks, for example, most motor vehicle insurance and some employee health or life covers). If you can claim the credit, the real cost of the policy is the base premium, not the total.
Limits. Stamp duty, if charged separately, and broker fees are outside this calculation. To add GST to a base premium instead, multiply the base by 1.18.
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