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Key Points

The GST Council has made a historic decision to eliminate taxes on critical medicines. Finance Minister Nirmala Sitharaman announced the removal of GST on 33 cancer and rare disease drugs. The reform also significantly reduces taxes on health insurance and medical equipment. These changes aim to make healthcare more affordable for millions of Indians.

Key Points: Sitharaman Slashes GST to Zero on 33 Cancer and Rare Disease Drugs

  • GST Council cuts tax on 33 cancer and rare disease drugs to 0% from 12%
  • Health insurance premiums reduced to nil GST from 18%
  • Medical devices and diagnostic kits see GST slashed to 5%
  • Harmful products like cigarettes retain high GST rates until loans cleared
2 min read

GST on 33 cancer drugs, rare disease medicines slashed to 0 from 12 pc: FM Sitharaman

Finance Minister Nirmala Sitharaman announces historic GST cuts to 0% on 33 cancer drugs and rare disease medicines, making treatment more affordable nationwide.

"GST on 33 life-saving drugs and medicines has come down from 12 per cent to zero - Finance Minister Sitharaman"

New Delhi, Sep 4

In a historic move, the Union government has slashed the Goods and Services Tax (GST) rates for 33 cancer drugs and rare medicines -- from 12 to zero per cent.

The decision taken by the GST Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday, rationalised the indirect tax structure, cutting the current four slabs down to two -- scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.

"GST on 33 life-saving drugs and medicines has come down from 12 per cent to zero," Finance Minister Sitharaman said.

The Union government also slashed GST rates for other life-saving drugs.

As per the revision, life-saving drugs, health-related products, and some medical devices will see a rate cut from 12 per cent/18 per cent to 5 per cent or nil.

"From 5 to 0 and 3 life-saving drugs and medicines used for the treatment of cancer, rare diseases and other severe chronic diseases," the Finance Minister added.

"There are several drugs and medicines coming down to 5 per cent from 12 per cent. Similarly, spectacles and goggles for correcting vision are also coming down to 5 per cent from 28 per cent," she said.

The changes in GST rates on services will be implemented from September 22.

The GST revision will also slash rates for health insurance, medical oxygen, and diagnostic kits.

GST on individual health and life insurance premiums have been reduced to nil (which currently stands at 18 per cent).

The Finance Minister said the move will make insurance more affordable for the common man and help expand coverage across the country.

The GST rates have been slashed from 18 per cent to 5 per cent on various medical apparatus and devices used for medical, surgical, dental or veterinary usage or for physical or chemical analysis

The GST rates have been reduced from 12 per cent to 5 per cent on various medical equipment and supplies devices such as wadding gauze, bandages, diagnostic kits and reagents, blood glucose monitoring system (Glucometer) medical devices, etc.

Meanwhile, products harmful to health such as pan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi will continue under existing high GST rates and compensation cess until outstanding cess-linked loans are cleared.

All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured to go from 28 per cent to 40 per cent.

- IANS

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Reader Comments

R
Rohit P
Finally some relief for middle-class families struggling with medical expenses. Hope the pharmaceutical companies pass on the full benefit to consumers and don't just increase their margins.
S
Sarah B
Great step! But I hope the government also ensures these medicines remain available and accessible in rural areas. Often the problem isn't just cost but availability.
A
Arjun K
Reducing health insurance premium GST to nil is a game-changer! More people will now opt for insurance coverage. Smart move to make healthcare affordable for common man. 👍
M
Meera T
While I appreciate the tax cuts on medicines, I'm concerned about the increased GST on aerated drinks to 40%. This might affect small beverage manufacturers and shopkeepers disproportionately.
V
Vikram M
Excellent decision! The focus on making healthcare affordable while keeping sin taxes high shows the government's balanced approach. More such pro-people policies needed!
K
Kavya N
As someone working in healthcare, I can tell you this will make a huge difference. Patients often skip medicines due to cost - this move will improve treatment adherence and outcomes.

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