The Indian government has announced a major GST reform aimed at making healthcare more affordable. Under the new policy, life-saving and cancer drugs are now exempt from GST, while a wide range of other essential medicines will see their GST reduced from 12% to 5%. Experts hail this move as a landmark step toward easing the financial burden on patients and families.
Sudarshan Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA), described the reform as a welcome step that improves access to essential therapies. Manoj Mishra, Partner at Grant Thornton Bharat, highlighted that the GST rationalisation benefits both patients and the pharma industry by providing clarity on the 5% slab, easing costs, and enabling better market planning.
The reduction isn’t limited to medicines alone. Medical devices, diagnostic kits, health insurance, glucometers, and corrective spectacles will also see lower GST rates, making essential healthcare products and services more accessible across urban, semi-urban, and rural areas.
Ameera Shah, President of NATHEALTH, emphasized that this measure will enhance access to quality healthcare, support early disease detection, and standardize GST rates across preventive, curative, and rehabilitative care.
The reform reflects a shift in India’s GST philosophy, aligning taxation with social priorities to ensure access to critical medicines is never compromised by cost. Stakeholders hope for smooth implementation, including GST refunds on services and capital goods, along with a transition period for packaging changes, allowing the savings to be passed directly to consumers.
With this initiative, the government is taking a significant step toward the vision of a Swasth Bharat underpinned by a Samriddh Bharat, ensuring that healthcare is not just a service but a right accessible to all.
