The government’s decision to reduce GST on life-saving and chronic therapies, medical devices, medtech items, and health insurance has been widely welcomed across the healthcare sector. The reform will lower medicine costs, make treatments more affordable, and improve access to essential healthcare services.
A Landmark Step for Affordable Medicines
Calling the GST reform “a welcome move and a landmark step,” Sudarshan Jain, Secretary-General of the Indian Pharmaceutical Alliance (IPA), emphasized that the move will improve access to medicines and directly address public health concerns. The government has exempted life-saving and cancer medicines from GST, a step that brings immediate relief to patients and families. Furthermore, the reduction of GST on a wide range of medicines from 12% to 5% will significantly reduce the treatment burden and make therapies more affordable.
As reported by TOI, the IPA noted in its statement that these reforms will expand availability of medicines across healthcare settings and contribute positively to the government’s vision of affordable healthcare for all.
GST Rationalisation: A Win for Patients and Industry
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, highlighted the dual benefit of the reform:
“The GST rationalisation brings a decisive win for patients and the pharma industry alike. By keeping formulations at just 5%, treatment costs for millions of households become more manageable, while nearly 36 life-saving drugs—including cancer therapies and medicines for rare diseases—are now fully exempted. This isn’t just tax policy; it is a lifeline that puts affordability and public health at the forefront.”
For the industry, Mishra added, the clarity of a 5% GST slab and exemptions removes long-standing ambiguity, supports transparent pricing, and enables better market planning. The move will expand access in semi-urban and rural markets, ease litigation, and free up resources for innovation. Above all, it signals a philosophical shift in GST, aligning taxation with social priorities to ensure critical medicines remain accessible.
Boost for MedTech, Devices, and Diagnostics
Welcoming the reduction in GST from 18% to 5% on a wide range of medical devices, diagnostic kits, and medtech items, Ameera Shah, President of NATHEALTH and Executive Chairperson, Metropolis Healthcare, said:
“By easing costs and improving affordability, this measure will enhance access to quality healthcare services, support early disease detection, and bring greater consistency by standardising GST rates across preventive, curative, and rehabilitative care.”
She further noted that the lower GST slabs on health insurance, glucometers, and corrective spectacles will make essential healthcare services and products more affordable. According to Shah, these progressive measures will advance the vision of a ‘Swasth Bharat’ underpinning a ‘Samriddh Bharat.’
Call for Global Competitiveness
Rajiv Nath, Forum Coordinator, AiMeD, appreciated the reform but also called for additional measures: “We hope GST refunds will be available on services and capital goods, as in countries like Australia, Singapore, and Canada, to help us remain globally competitive. We also hope a transition period is provided to switch packaging material to avoid persecution for profiteering, though we intend to pass on the GST reduction to consumers by reducing MRP proportionately.”
Toward a Healthier and Fairer Future
Overall, the GST rationalisation marks a transformative step in healthcare policy. By reducing treatment costs, exempting life-saving drugs, and lowering taxes on devices and insurance, the government has reaffirmed its commitment to making affordable, accessible, and quality healthcare a reality for millions of Indians.
GST Cut on Medical Apparatus and Devices
The government also reduced GST on various medical apparatus and devices from 12% to 5%. These items include:
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Organs and extracts for organo-therapeutic uses, heparin and its salts, and other therapeutic or prophylactic substances.
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Animal blood products, antisera, modified immunological products, toxins, and cultures of microorganisms.
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Wadding, gauze, bandages, diagnostic kits, reagents, and glucometers.
Additionally, sterile surgical goods such as catgut, sutures, tissue adhesives, laminaria tents, haemostatics, adhesion barriers, and waste pharmaceuticals (other than contraceptives) will now attract only 5% GST.
Full List of Lifesaving Drugs Exempted
Drugs moved from 5% to NIL (3):
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Agalsidase Beta
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Imiglucerase
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Eptacog alfa (activated recombinant coagulation factor VIIa)
Drugs moved from 12% to NIL (33):
Onasemnogene abeparvovec, Asciminib, Mepolizumab, Pegylated Liposomal Irinotecan, Daratumumab (IV and 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 moved from 12% to 5% (all medicines, including):
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Fluticasone Furoate + Umeclidinium + Vilanterol (FF/UMEC/VI)
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Brentuximab Vedotin
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Ocrelizumab
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Pertuzumab
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Pertuzumab + Trastuzumab
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Faricimab