GST 2.0 - A step towards affordable healthcare

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.