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India to Cut GST on Medicines and Medical Devices from September 22, Easing Treatment Costs
Under the reforms approved at the 56th GST Council meeting, GST has been slashed for a wide array of healthcare items. Thirty-three lifesaving drugs previously taxed at 12 percent and three other critical medicines formerly taxed at 5 percent will now attract zero GST.
- By Newsdesk
- New Delhi
- Sep 13, 2025
Starting September 22, 2025, medicines, formulations and medical devices across India will become cheaper as the government implements a major reduction in Goods & Services Tax (GST). Pharmaceutical and medical device manufacturers have been directed to revise their Maximum Retail Prices (MRPs) in line with the new tax rates and ensure that the benefit reaches patients.
The National Pharmaceutical Pricing Authority has instructed companies to issue updated or supplementary price lists to retailers, dealers, state drug controllers and other regulatory authorities. Manufacturers have also been urged to publicise the revised prices widely through print, electronic and social media to ensure consumers are aware of the changes.
Under the reforms approved at the 56th GST Council meeting, GST has been slashed for a wide array of healthcare items. Thirty-three lifesaving drugs previously taxed at 12 percent and three other critical medicines formerly taxed at 5 percent will now attract zero GST. Most other drugs and many medical devices, diagnostic kits and supplies such as bandages, gauze and glucometers will see GST cut from 12 or 18 percent to 5 percent.
To smooth implementation, existing stock already released into the market before September 22 will not need to be recalled or relabelled, provided retailers reflect the revised prices at the point of sale.
These changes are expected to significantly reduce out-of-pocket medical expenses for patients, particularly those managing chronic or serious illnesses, and form part of the government’s broader push to make healthcare more affordable across the country.