Personal Finance Does GST paid on insurance premium qualify for tax benefit? Updated : February 21, 2020 06:35 PM IST When an individual pay a premium for a life or health policy, he/she is also required to pay GST, which is calculated as a percentage of the policy. According to Section 80D, a taxpayer is entitled to tax benefits under insurance policies on the entire amount paid towards the premium of the specific plan. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.