SBI Life shares gained today as life insurance premiums become GST-free

SBI Life shares gained today. The stock closed the day, today, 22^nd September, up by 0.75%.  Nifty 50 index closed the day today, down by 0.49%. In the past 5 days SBI Life’s stock has gained 2.08%. Much of these gains have come since 18^th September, 2025.

SBI Life to benefit from the new GST rates

SBI Life will benefit from the lower GST rates that have come into effect from today. There will be 0% GST now on life insurance premiums. Earlier life insurance premiums attracted 18% GST. However, life insurance companies cannot claim input tax credits on GST that they pay on their expenses. Expenses of life insurance companies include agent fee that they pay, other operational expenses etc.

SBI Life and other life insurance companies may retain some of the benefits of 0% GST in order to offset the impact of not being able to avail input tax credit. They may do so by increasing life insurance premiums. Still, life insurance policies will become significantly cheaper for buyers of these policies. This is turn is likely to increase the demand for these policies. SBI Life therefore stands to gain significantly.

Market growth and market penetration opportunities in the life insurance segment

Life insurance coverage in India is still relatively low. According to one study, in many rural parts of the country, life insurance coverage is as low as 10% of the population. So there is significant scope for market growth and market penetration in the life insurance segment in the country. With lower premiums due to no GST, companies like SBI Life may show faster growth and expansion.

SBI Life stock is an outperformer this year

Year-to-date in 2025, SBI Life’s share has gained 32.66%. In the same period, Nifty 50 index has gained 6.14%. The stock has outperformed the Nifty 50 index by more than 26%, this year.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE