PB Fintech, Go Digit Zoom Up To 6% On GST Exemption For Insurance 

Insurtech companies PB Fintech and Go Digit saw their shares rise in the intraday trade today after the GST Council announced exemption of GST on life and health policies yesterday.

Policybazaar parent PB Fintech’s shares surged 6% to INR 1,960.91 intraday on the BSE, while Go Digit rose 4.8% to touch INR 371.65 during early trading hours.

At 10:30 AM, shares of PB Fintech were trading 4.8% higher at INR 1,918.75. At this point, the company’s market capitalisation stood at INR 88,119.99 Cr (about $9.9 Bn), with as many as 10.5 Lakh shares changing hands.

At the same time, Go Digit shed most of its gains for the day and was trading 0.3% higher at INR 355.75. Its market capitalisation stood at INR 32,846.40 Cr (about $3.7 Bn) and a trading volume of 6.5 Lakh shares.

Yesterday, the GST Council announced that life and health insurance policies will be exempted from GST starting September 22, 2025. Before this, premiums for these products attracted 18% GST.

The exemption covers all individual life insurance policies, including term, ULIP, and endowment plans and reinsurance services for them. For health insurance, all individual health insurance policies, including family floater plans and senior citizen policies and the reinsurance services thereof have been exempted.

While the move is expected to bring down the premiums for these insurance products, it is also pertinent to highlight that the insurance industry had called for 5% GST as against 0%. This is because the companies would not be able to claim input tax credit (ITC) under 0% rate.

Interestingly, the finance ministry, while addressing a question on non-exemption of small agricultural tractors from GST, said in its FAQs, “The objective is to provide relief to the farmers while not disincentivising domestic producers. Fully exempting small tractors would be counterproductive. When the rate of tax on any goods is nil, the suppliers cannot claim ITC on the inputs used in manufacture of the goods and will have to reverse the same. This means that the producers have to absorb this cost which will eventually be passed to the buyers.”

Overall, the GST Council simplified the GST rate structure by cutting it down to two main slabs – 5% and 18%. There would be a separate 40% slab for sin goods and super luxury items.

A reduction in insurance premiums will give a boost to the businesses of PB Fintech and Go Digit, which have been seeing strong growth.

In Q1 FY26, PB Fintech’s consolidated profit after tax (PAT) jumped 41% YoY to INR 84.7 Cr. Operating revenue rose 34% YoY to INR 1,348 Cr.

Its insurance business Policybazaar raked in a revenue of INR 1,118.7 Cr, marking a 41% YoY growth.

Meanwhile, Go Digit’s net profit zoomed 37% YoY to INR 138.3 Cr in the June quarter of 2025. Its total income rose 5% to INR 2,179.5 Cr in Q1 FY26.