GST Reforms: The Goods and Services Tax (GST) Council has introduced sweeping changes to the taxation of medicines and medical equipment, offering significant relief to patients and healthcare providers.
Announcing the reforms on Wednesday, Finance Minister Nirmala Sitharaman confirmed that the GST structure has been streamlined into two primary slabs of 5 per cent and 18 per cent, alongside a special 40 per cent rate for super luxury and sin goods.
Nil GST on Lifesaving Medicines
One of the most notable revisions is the decision to exempt 33 lifesaving medicines from GST, cutting their tax rate from 12 per cent to nil. In addition, three essential drugs previously taxed at 5 per cent have also been brought to the nil category. These medicines include treatments for rare conditions, cancer, and chronic diseases. The move is aimed at reducing the financial burden on patients who rely on high-cost therapies.
Some of the key drugs in this list are Onasemnogene abeparvovec, Asciminib, Daratumumab, Alectinib, Risdiplam, and Inclisiran, among others. Critical therapies such as Imiglucerase and Agalsidase Beta are also now available tax-free.
Tax Relief on Other Medicines and Devices
For all other drugs and medicines, the GST has been lowered from 12 per cent to 5 per cent. The rate cut covers a wide range of pharmaceutical products, including Fluticasone Furoate + Umeclidinium + Vilanterol, Brentuximab Vedotin, Ocrelizumab, and Pertuzumab.
Similarly, GST on medical devices and apparatus, used across medical, surgical, dental and veterinary practices, has been brought down from 12 per cent to 5 per cent. This includes diagnostic kits, glucometers, reagents, and supplies such as bandages, wadding gauze, and adhesive plasters. Items like sterile surgical catgut, tissue adhesives, laminaria tents, and haemostatics also fall under the revised 5 per cent slab.
Impact on Healthcare Sector
The reform is expected to make essential healthcare products more affordable while easing costs for hospitals and diagnostic centres. By lowering the cost of both medicines and supporting devices, the changes address long-standing demands from the healthcare sector for reduced taxation.
The Finance Minister underlined that these revisions reflect the government’s commitment to accessibility and affordability in healthcare. Experts believe the tax cuts could improve treatment adherence by making advanced therapies more financially accessible to patients.
With the revised GST structure set to take effect from September 22, the overhaul marks a critical step in balancing revenue needs with the urgent requirement of affordable healthcare solutions in India.
GST Cut On Drugs And Medicine – Full List
Drugs Moved From 5% To 0% Tax
Agalsidase Beta
Imiglucerase
Eptacog alfa activated recombinant coagulation factor VIIa
33 Drugs Reduced From 12% To 0% Tax
Onasemnogene abeparvovec
Asciminib
Mepolizumab
Pegylated Liposomal Irinotecan
Daratumumab
Daratumumab subcutaneous
Teclistamab
Amivantamab
Alectinib
Risdiplam
Obinutuzumab
Polatuzumab vedotin
Entrectinib
Atezolizumab
Spesolimab
Velaglucerase Alpha
Agalsidase Alfa
Rurioctocog Alpha Pegol
Idursulphatase
Alglucosidase Alfa
Laronidase
Olipudase Alfa
Tepotinib
Avelumab
Emicizumab
Belumosudil
Miglustat
Velmanase Alfa
Alirocumab
Evolocumab
Cystamine Bitartrate
CI-Inhibitor injection
Inclisiran
Drugs And Medicines Moved From 12% To 5%
Fluticasone Furoate + Umeclidinium + Vilanterol FF/UMEC/VI
Brentuximab Vedotin
Ocrelizumab
Pertuzumab
Pertuzumab + trastuzumab
Faricimab
