Did the GST on 33 cancer drugs and rare disease medicines really drop to 0% from 12%?
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Synopsis
In a groundbreaking move, the Union government has removed the GST on 33 cancer drugs and rare disease medicines, reducing it from 12% to 0%. This unprecedented decision, aimed at making life-saving medications more accessible, was announced by Finance Minister Nirmala Sitharaman. Discover the implications of this change and how it affects healthcare costs in India.
Key Takeaways
- The GST on 33 cancer drugs and rare disease medicines has been slashed to 0%.
- Life-saving drugs and medical devices will see significant tax reductions.
- This move aims to enhance healthcare accessibility.
- The changes will be effective from September 22.
- Health insurance premiums have been made more affordable.
New Delhi, Sep 4 (NationPress) In a groundbreaking decision, the Union government has reduced the Goods and Services Tax (GST) rates on 33 cancer medications and rare disease treatments from 12% to 0%.
This pivotal resolution, made during a GST Council meeting led by Finance Minister Nirmala Sitharaman, has streamlined the indirect tax system by cutting down the number of slabs from four to two, eliminating the 12% and 28% per cent rates while maintaining the 5% and 18% per cent slabs.
“The GST on 33 essential drugs and medicines has been slashed from 12% to 0%,” stated Finance Minister Sitharaman.
Additionally, the Union government has also reduced GST on other essential medicines.
According to the new changes, life-saving medications, health-related products, and certain medical devices will experience a tax reduction from 12% or 18% per cent to 5% or nil.
“Several life-saving drugs and medicines utilized for treating cancer, rare diseases, and other severe chronic illnesses are now at 0%,” the Finance Minister noted.
“Moreover, various other medications will see a decrease to 5% from 12%. Likewise, spectacles and vision-correcting goggles will also reduce to 5% from 28%,” she added.
The modifications to GST rates on services will take effect from September 22.
This revision will also lower the tax on health insurance, medical oxygen, and diagnostic kits.
GST on individual health and life insurance premiums has been decreased to nil from the current 18% per cent.
The Finance Minister emphasized that this initiative will make insurance more accessible to ordinary citizens and enhance coverage nationwide.
Furthermore, GST rates for various medical apparatus and devices used in medical, surgical, dental, or veterinary practices, or for physical or chemical analysis, have been reduced from 18% to 5%.
Additionally, GST rates for medical supplies and equipment such as wadding gauze, bandages, diagnostic kits, and blood glucose monitoring systems (Glucometers) have seen a reduction from 12% to 5%.
Meanwhile, products detrimental to health, including pan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi will remain under the existing high GST rates and compensation cess until outstanding cess-linked loans are settled.
All goods (including aerated waters) containing added sugar or other sweetening substances will see an increase from 28% to 40%.
Point of View
I believe this reduction in GST rates is a commendable step towards making healthcare more affordable. By lowering taxes on essential drugs, the government is prioritizing public health and ensuring that life-saving treatments are accessible to those in need. This decision reflects a holistic approach to healthcare reform, aligning with the nation’s commitment to improve the quality of life for all citizens.
NationPress
03/09/2025
Frequently Asked Questions
What is the new GST rate for cancer drugs?
The GST rate for 33 cancer drugs has been reduced from 12% to 0%.
When will the new GST rates take effect?
The revised GST rates will be implemented from September 22.
How will this affect health insurance costs?
The GST on individual health and life insurance premiums has been reduced to nil, making insurance more affordable.
What other items have seen a GST reduction?
Other life-saving drugs, health-related products, and certain medical devices have also experienced rate cuts.
Are there any products that remain at high GST rates?
Yes, products harmful to health, such as tobacco and related items, will continue to have high GST rates.
