From 12% GST to Nil: Centre breaks down relief on life-saving medicines in Rajya Sabha
Medical devices and instruments used in healthcare have also been rationalized to a 5% concessional GST rate, unless exempted.
The Ministry of Finance has clarified that no requests have been received from traders, manufacturers, or service providers in Tamil Nadu seeking a reduction in GST rates on life-saving medicines, medical equipment, or service products. Responding to a question in the Rajya Sabha, Minister of State for Finance Shri Pankaj Chaudhary stated that GST rates are determined by the...
The Ministry of Finance has clarified that no requests have been received from traders, manufacturers, or service providers in Tamil Nadu seeking a reduction in GST rates on life-saving medicines, medical equipment, or service products.
Responding to a question in the Rajya Sabha, Minister of State for Finance Shri Pankaj Chaudhary stated that GST rates are determined by the GST Council, a constitutional body comprising representatives of the Centre and States/UTs.
In its 56th meeting held on September 3, 2025, the Council undertook a comprehensive rationalization of healthcare-related GST rates. As part of this exercise:
- GST on 36 specified life-saving drugs and medicines was reduced to Nil (from 12%/5%).
- All other medicines now attract a concessional rate of 5%, unless specifically exempted.
- Medical devices, instruments, and apparatus used in medical, surgical, dental, or veterinary sciences were also rationalized to a 5% concessional rate, unless exempted.
The GST Council meeting is referred to as a formal session of the Goods and Services Tax Council, a constitutional body established under Article 279A of the Indian constitution. It is chaired by the Union Finance Minister, with members including the Union Minister of State for Finance and Finance Ministers of all States/UTs.
By rule, the council is expected to meet at least once every quarter, though practice meetings sometimes occur after longer gaps.
The government stated that these reductions reflect its commitment to making essential healthcare more affordable and accessible. A GST Council meeting is where India’s Centre and States come together to decide on changes to the GST framework, balancing revenue needs with economic and social priorities.
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