By Malik 
New Delhi / Thrissur, September 2025: Indian taxpayers and insurance policyholders are set to benefit from two major developments — South Indian Bank (SIB) has introduced UPI-based GST payment services, and insurers are working on ways to pass on the recent GST rate cut on life and health insurance premiums to customers.
South Indian Bank Enables UPI GST Payments
Thrissur-based South Indian Bank has launched a new service allowing taxpayers to pay their Goods and Services Tax (GST) via Unified Payments Interface (UPI) directly on the GST portal.
Taxpayers can complete payments by either:
- Scanning a QR code, or
- Entering a Virtual Payment Address (VPA).
Biji SS, SGM & Head – Branch Banking at SIB, said:
“UPI is the most preferred mode of payment today. This integration allows taxpayers, including both our customers and non-customers, to pay GST securely and effortlessly from anywhere.”
SIB is an RBI-approved Agency Bank and was authorized by the Central Board of Indirect Taxes & Customs (CBIC) to collect indirect taxes. Earlier, SIB accepted GST payments via internet banking and at bank branches, but this new UPI integration aims to make tax payment faster and simpler.
Insurers Working on GST Cut Benefit
Insurance companies are evaluating how to pass on the benefit of the 0% GST rate on individual life and health insurance premiums.
According to Edme Insurance Brokers Ltd. (formerly ABIBL):
“With GST on premiums reduced to zero, insurers can no longer avail input tax credit. While the entire benefit may not be passed to customers, insurers will adjust pricing to provide the best possible savings.”
This development is expected to reduce the cost of renewals and encourage more people to invest in life and health insurance policies.
Industry Insights
- Edme Insurance Brokers recently became India’s 3rd largest insurance broker after acquiring UIB’s India operations.
- The company plans to double its workforce to 1,000 employees over the next five years and expand operations to the UAE, UK, and Singapore.
Key Takeaway
These developments are likely to have a positive impact on both tax compliance and insurance adoption in India. The UPI GST payment facility simplifies tax payment for individuals and businesses, while the GST cut on premiums is expected to make insurance more affordable, boosting overall coverage in the country.