Tax Reform and Consumer Relief: a Study on the Affordability of Health Insurance Under Gst 2.0

RAKSHA H V

doi:10.36948/ijfmr.2025.v07i05.58955

Tax Reform and Consumer Relief: a Study on the Affordability of Health Insurance Under Gst 2.0

Author(s)	Prof. RAKSHA H V
Country	India
Abstract	The rollout of GST 2.0 is an important move in the process of tax reforms that India has been pursuing, which would simplify the tax structure for indirect taxes, encourage transparency, and reinforce economic efficiency. This second generation of the Goods and Services Tax (GST) seeks to rationalize the rates of taxation, lower the costs of compliance, and advance consumer well-being through better fiscal mechanisms. In this perspective, the health insurance industry is of crucial importance to consumer well-being as it has a direct impact on the economic security and accessibility of health services among millions of Indian citizens. This current research seeks to analyze whether GST 2.0 changes have affected the pricing affordability of health insurance premiums in India, especially on the consumer side. The study employs a descriptive approach based mainly on secondary data derived from credible sources like IRDAI reports, GST Council publications, records of insurance companies, and associated government and industry databases. Initial evidence shows that GST 2.0 has made the tax regime on health insurance policies more rational, resulting in moderate price cuts in premiums and enhanced price transparency. These developments have increased affordability and access, ensuring higher insurance penetration levels among middle-income consumers. The analysis points out that the reform has not just streamlined insurer operations but also provided consumers with relief in terms of costs. In all, the study contributes critical policy insights highlighting that continued tax clarity and fiscal incentives can further enhance the affordability and take-up of health insurance in India.
Keywords	GST 2.0, Health Insurance, Premium Affordability, Tax Reform, Consumer Welfare, Insurance Penetration, Financial Inclusion, India
Field	Sociology > Economics
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-29
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58955

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Tax Reform and Consumer Relief: a Study on the Affordability of Health Insurance Under Gst 2.0

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