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Key Points

The GST Council has implemented significant tax reforms to make healthcare more affordable. Medical devices and most medicines now attract just 5% GST instead of 12%. Thirty-six critical life-saving drugs for conditions like cancer and rare diseases are completely exempt from GST. Industry experts praise these changes as transformative for improving healthcare access across India.

Key Points: GST 2.0 Makes Medical Devices and Medicines More Affordable

  • GST reduced from 12% to 5% on medical devices and most medicines
  • 36 critical life-saving drugs fully exempted from GST
  • Industry pledges to pass savings directly to patients and hospitals
  • Tax rationalization includes health insurance and corrective spectacles
2 min read

GST 2.0 to make healthcare more affordable, accessible: Experts

GST Council cuts tax on medical devices to 5% and exempts 36 life-saving drugs, making healthcare more accessible and affordable across India.

"This landmark reform will lower treatment costs and expand access to essential healthcare technologies across India - AiMeD"

New Delhi, Sep 22

Medical devices and pharma industry experts on Monday lauded the implementation of revised tax rates under GST 2.0, noting that it will make healthcare more affordable and accessible.

Early this month, the GST Council reduced the GST on medical devices to 5 per cent from 12 per cent.

In a post on social media platform X, the Association of Indian Medical Device Industry (AiMeD) called it a transformative step towards a healthier, stronger, and Atmanirbhar Bharat.

“Thank you, Prime Minister Narendra Modi Ji, for reducing GST on medical devices from 12 per cent to 5 per cent, making them more affordable for every citizen,” the post read.

“This landmark reform will lower treatment costs and expand access to essential healthcare technologies across India,” it added.

AiMeD also pledged to pass on “the benefits, ensuring affordable, high-quality, made in India devices for patients, hospitals, and labs nationwide”.

With the GST rationalisation, most medicines, earlier taxed at 12 per cent, will now attract just 5 per cent GST.

In addition, 36 critical life-saving drugs for cancer, genetic and rare diseases, and cardiovascular conditions have been fully exempted (0 GST). The GST Council has also rationalised tax slabs on health and life insurance premiums, glucometers, and corrective spectacles.

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA), noted that the move will deliver direct savings to patients, easing the burden on families.

“These measures mark a transformative shift in India’s healthcare landscape, delivering direct savings to patients, easing the burden on families, improving access to essential care, and strengthening healthcare security,” Jain said

He added that the IPA, representing 23 leading research-driven companies, “is fully committed to ensuring these benefits reach citizens swiftly and transparently, advancing our mission of affordable and accessible healthcare for all”.

- IANS

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Reader Comments

R
Rohit P
Great initiative by the government! Healthcare costs were becoming unbearable for common people. Hope the manufacturers actually pass on the benefits to consumers and don't just increase their profit margins.
S
Sarah B
As someone who works in healthcare, I've seen patients struggle with medical expenses. The exemption for critical life-saving drugs is particularly impactful. This could literally save lives across India.
A
Arjun K
While this is good news, I hope the government ensures proper implementation. Sometimes these benefits don't reach the end consumer. Need strict monitoring of pricing by medical device companies.
M
Meera T
My diabetic mother will benefit from the glucometer tax reduction. Small things make big differences in healthcare accessibility. Hope more such reforms follow! 🇮🇳
D
David E
The focus on 'Made in India' medical devices is crucial for long-term healthcare affordability. Reducing dependency on imports will stabilize prices and create jobs. Smart policy making!
K
Karthik V
Insurance premium tax rationalization is also important. Many families avoid health insurance due to costs. This should make comprehensive coverage more accessible to middle-class Indians.

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