GST reforms 2026: Employers get ITC on employee health, life insurance premiums. Comprehensive market analysis and insights regarding this update. The GST Council has recommended allowing employers to claim input tax credit on GST paid for health and life insurance policies taken for employees. The move could reduce the effective cost of employer-sponsored coverage, particularly benefiting small businesses, while making group health insurance more affordable and improving employee benefits. Industry experts note that this development will have significant implications moving forward.