The 56th meeting of the GST Council held in New Delhi recommended GST 2.0 ,the following reforms in healthcare:
1.Reduction of GST from 12% to NIL on 33 lifesaving drugs and medicines and from 5% to NIL on 3 lifesaving drugs & medicines used for treatment of cancer, rare diseases and other severe chronic diseases.
2.Reduction of GST on all other drugs and medicines from 12% to 5%.
3.Reduction of GST from 18% to 5% on various medical apparatus and devices used for medical, surgical, dental or veterinary usage or for physical or chemical analysis
4.Reduction of GST from 12% to 5% on various medical equipment and supplies devices such as wadding gauze, bandages, diagnostic kits and reagents, blood glucose monitoring system (Glucometer) medical devices, etc.
India’s new GST 2.0 reforms are a big win for healthcare affordability. With GST on most drugs cut from 12% to 5% and over 30 life-saving medicines especially for cancer and chronic diseases and diagnostic tools now tax-exempt, patients can expect real savings. These drugs make up around 15–22% of hospital bills, so the tax changes could bring costs down notably especially for vulnerable groups. Starting 22 September 2025, even medicines for cancer and rare conditions will have zero tax, while health and life insurance premiums also become GST-free.
The recent GST reforms, effective September 22, 2025, are a game-changer for India’s healthcare sector. They will significantly reduce the financial burden on citizens by making life-saving drugs and essential medical equipment more affordable. This move is a major step towards achieving a more accessible and equitable healthcare system
New GST reforms are a huge step forward for affordable healthcare in India. It’s great to see a focus on making life-saving drugs and medical devices more accessible to everyone.
GST 2.0 could indeed be a game-changer for affordable healthcare, as reducing tax burdens on medicines, medical devices, and services can directly lower treatment costs. If implemented wisely, it can make essential care more accessible to patients while also supporting the healthcare industry’s growth.