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Key Points

The GST Council has approved major tax reforms that will significantly reduce healthcare costs for Indians. Essential medicines, medical devices, and diagnostics will now have lower GST rates of 5% or nil. Health and life insurance services have been completely exempted from GST to improve accessibility. These changes represent the government's commitment to making healthcare affordable while promoting preventive wellness across the country.

Key Points: Nadda Says Next-Gen GST Cuts Healthcare Costs for Healthy Bharat

  • GST Council reduces tax slabs from four to two rates
  • Life-saving drugs and medical devices drop to 5% or nil GST
  • Health and life insurance services now fully exempt from GST
  • Gyms and wellness services made more affordable for preventive care
2 min read

'Next-Gen' GST reforms to cut healthcare cost, lead towards fit, healthy Bharat: JP Nadda

Health Minister JP Nadda announces GST reforms reducing tax on medicines, medical devices, and insurance to make healthcare more affordable across India.

"Historic GST reforms under the visionary leadership of PM Narendra Modi Ji mark a giant step towards affordable healthcare for all - JP Nadda"

New Delhi, Sep 4

Calling the reforms made in the Goods and Services Tax (GST), truly next-gen in nature, Union Health Minister J.P. Nadda on Thursday said that it will bring down the healthcare costs and lead towards a fit and healthy Bharat.

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.

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.

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

"Historic GST reforms under the visionary leadership of PM Narendra Modi Ji mark a giant step towards affordable healthcare for all," Nadda shared in a post on the social media platform X.

He highlighted that "essential drugs and devices will have 5 per cent/Nil GST. Health and life insurance is exempted from GST. Cheaper spectacles and diabetic foods. This is a true next-gen GST for a healthy India".

Further, GST has also been reduced for medicines, medical devices, and diagnostics. Gyms and wellness services made affordable points out that "preventive health is priority -- towards a Fit & Healthy Bharat", Nadda said.

These next-gen GST reforms will support ongoing growth and development, he said.

On zero GST on life-saving drugs, including cancer and rare disease treatment, the Health Minister stated that the "reforms reaffirm our government’s commitment to the poor and middle class".

"Reduced tax rates on several essential products will enhance ease of living, help families manage costs, and bring relief to different sectors," he said.

Beyond boosting health services, Nadda said that these reforms will also "strengthen the ease of doing business and empower small businesses across the country".

"PM Narendra Modi Ji’s vision of Ease of Living shines in GST rationalisation," he said.

- IANS

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Reader Comments

R
Rohit P
Finally some relief for common people. Healthcare costs were skyrocketing and this rationalization was long overdue. Hope the benefits actually reach the consumers and aren't absorbed by pharmaceutical companies.
A
Arjun K
Great initiative! Making health insurance GST-free and reducing taxes on medical devices will encourage more people to opt for insurance coverage. Preventive healthcare should indeed be the focus.
S
Sarah B
As someone who runs a small gym, the reduced GST on wellness services is a big relief. It will help us keep membership fees affordable and promote fitness among more people. Good step!
V
Vikram M
While the intention is good, implementation is key. Hope the government ensures that hospitals and pharmacies actually pass on the benefits to patients. Monitoring mechanism should be put in place.
N
Nisha Z
Zero GST on life-saving drugs for cancer and rare diseases is a blessing for so many families. Medical treatment in India can be financially devastating. This reform shows the government cares about public health. ❤️

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