Healthcare Gets Cheaper: GST Council Proposes Nil Tax on 36 Lifesaving Drugs, Slashes Rate on Medical Devices to 5%
GST Council slashes tax on healthcare: 33 lifesaving drugs now at Nil GST, all medicines at 5%, and medical devices cut to 5% for cheaper treatment
GST Council, Healthcare Gets Cheaper
GST Council, Healthcare Gets Cheaper
The 56th meeting of the Goods and Services Tax (GST) Council was held at Sushma Swaraj Bhavan in New Delhi on September 03, 2025, chaired by Union Finance Minister Nirmala Sitharaman, has proposed a series of tax cuts on medicines, medical devices, and healthcare products, making treatment and essential supplies more affordable for patients.
During the press meet, the Finance Minister said:
“33 lifesaving drugs and medicines and they all come down from 12 to zero. From 5 to 0 and three life-saving drugs and medicines used for treatment of cancer, rare diseases and other severe chronic diseases.
There are several drugs and medicines coming down to five from 12. I’m not listing each one of them out. Like that very many other items diagnostic kits, reagents, blood glucose monitoring system all of them are coming to 5%. Similarly spectacles and goggles are for correcting vision they are also coming down to 5% from 28.”
Detailed Reductions
Lifesaving drugs & medicines:
- 3 drugs (Agalsidase Beta, Imiglucerase, Eptacog alfa activated recombinant coagulation factor VIIa) – reduced from 5% to Nil.
- 33 drugs & medicines for treatment of cancer, rare diseases, and chronic conditions (e.g., Onasemnogene abeparvovec, Daratumumab, Risdiplam, etc.) – reduced from 12% to Nil.
- All other drugs and medicines, including Ayurvedic, Unani, Homeopathic, etc. – reduced from 12% to 5%.
Medical apparatus & devices:
- Instruments/apparatus for medical, surgical, dental or veterinary uses for physical or chemical analysis – reduced from 18% to 5%.
- Wadding, gauze, bandages, diagnostic kits/reagents, blood glucose monitoring systems (glucometers), occlusion devices, etc. – reduced from 12% to 5%.
- Spectacles and corrective goggles, which earlier attracted 28% GST, will now be taxed at only 5%.
The Council also announced relief for the transport sector, GST on ambulances cut from 28% to 18%.
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