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New GST Regime Promises to Make Healthcare More Affordable Across India
According to the Indian Pharmaceutical Alliance (IPA), these changes also extend beyond medicines. The GST Council has rationalized rates on health and life insurance premiums, glucometers, and corrective eyewear such as spectacles.
- By Newsdesk
- New Delhi
- Sep 24, 2025
In a landmark move, the Indian government has rolled out revised GST rates aimed at reducing costs in the health sector, particularly for medicines and medical devices — a step hailed by industry insiders as a breakthrough in making healthcare more accessible for all.
Under the fresh regime, which took effect on September 22, most medicines previously taxed at 12 percent will now attract only 5 percent GST. Even more notably, 36 critical drugs—used in treatments of cancer, cardiovascular diseases, genetic disorders, and rare illnesses—have been completely exempted from GST.
According to the Indian Pharmaceutical Alliance (IPA), these changes also extend beyond medicines. The GST Council has rationalized rates on health and life insurance premiums, glucometers, and corrective eyewear such as spectacles.
IPA’s Secretary General, Sudarshan Jain, described the policy shift as transformative. He emphasized that the lower tax burden will yield direct savings for patients and relieve financial pressure on families by improving access to essential care.
Anil Matai, Director General of the Organisation of Pharmaceutical Producers of India (OPPI), called the decision “historic and compassionate.” He pointed out that 33 essential drugs have been moved from the 12 percent bracket to being fully exempt, while three critical drugs for chronic diseases have been lifted from 5 percent to zero tax.
Ameera Shah, President of NATHEALTH and Executive Chairperson of Metropolis Healthcare, welcomed the changes, stating that standardizing GST across preventive, curative, and rehabilitative care will help streamline costs, facilitate early disease detection, and promote consistency in the healthcare system.
The unified GST framework is expected to alleviate cost pressures across the healthcare ecosystem—from hospitals down to households—while enabling affordability and promoting better health outcomes.