In a landmark move aimed at improving healthcare affordability, the GST Council has decided to exempt 33 life-saving drugs and medicines from Goods and Services Tax (GST). These critical drugs, which were earlier taxed at 12%, will now attract zero GST, providing much-needed relief to patients and their families.
Relief in healthcare sector
The exemption covers drugs used in the treatment of cancer, rare diseases, and other critical illnesses that often involve high treatment costs. The move ensures that patients will not have to bear the additional tax burden on these essential medicines, bringing down overall medical expenses.
As part of broader healthcare reforms under the Next-Gen GST, other medical essentials have also seen major tax cuts:
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Individual health & life insurance: Reduced from 18% to nil
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Medical-grade oxygen: Brought down from 12% to 5%
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Diagnostic kits & reagents: Reduced from 12% to 5%
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Glucometers & test strips: Lowered from 12% to 5%
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Corrective spectacles: Reduced from 12% to 5%
Big step for healthcare accessibility
The government highlighted that reducing taxes on essential drugs and medical items aligns with its goal of making healthcare more accessible and affordable for all sections of society. The reform is expected to provide immediate financial relief to households battling chronic and life-threatening conditions.
This exemption forms a crucial part of the Council’s wider rationalisation exercise, aimed at easing the cost of living while stimulating economic growth.
