Are 'Next-Gen' GST Reforms Set to Slash Healthcare Costs and Promote a Fit, Healthy Bharat?
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Synopsis
The new GST reforms introduced by Union Minister J.P. Nadda promise to revolutionize India’s healthcare landscape by significantly lowering costs. With essential medicines and health products now more affordable, the vision for a fit and healthy Bharat is closer than ever. This transformation is set to empower both individuals and businesses throughout the nation.
Key Takeaways
- GST reforms cut tax rates for essential medicines.
- Health and life insurance are exempt from GST.
- Focus on preventive health with affordable wellness services.
- Support for the underprivileged and middle-class citizens.
- Empowerment of small businesses through reduced tax burdens.
New Delhi, Sep 4 (NationPress) Union Health Minister J.P. Nadda emphasized that the recent reforms in the Goods and Services Tax (GST) are genuinely next-gen, stating that they will significantly reduce healthcare expenses and contribute to a fitter, healthier Bharat.
The GST Council, led by Finance Minister Nirmala Sitharaman, made a pivotal decision on Wednesday to streamline the indirect tax system, cutting the existing four slabs to just two—eliminating the 12% and 28% rates while keeping the 5% and 18% categories.
With these adjustments, essential medications, health-related products, and specific medical devices will benefit from a tax reduction from 12%/18% to either 5% or none.
The implementation of these amended GST rates for services is set for September 22.
“These historic GST reforms under the foresighted leadership of PM Narendra Modi Ji represent a monumental step towards affordable healthcare for everyone,” Nadda noted in a post on the social media platform X.
He pointed out that essential drugs and medical devices will now have a 5% or no GST. Additionally, health and life insurance will be exempt from GST, along with cheaper spectacles and diabetic food options. “This represents a true next-gen GST for a healthier India,” he added.
Moreover, the GST reduction extends to medicines, medical apparatus, and diagnostic services. Nadda highlighted that making gyms and wellness services more affordable underscores the government's priority on preventive health—aiming for a Fit & Healthy Bharat.
These next-gen GST reforms are expected to bolster ongoing growth and development, he explained.
Addressing the zero GST on life-saving medications, including those for cancer and rare diseases, the Health Minister reiterated that the “reforms affirm our government’s dedication to the underprivileged and middle-class citizens.”
“Lower tax rates on essential goods will improve the ease of living, assist families in managing their finances, and provide relief across various sectors,” he stated.
Beyond enhancing health services, Nadda mentioned that these reforms will also “strengthen the ease of doing business and empower small enterprises nationwide.”
“PM Narendra Modi Ji’s vision of Ease of Living is clearly reflected in the GST rationalization,” he concluded.
Point of View
The recent GST reforms represent a substantial commitment from the government to enhance healthcare accessibility while promoting economic growth. The focus on essential goods and services reflects a strategic effort to support the well-being of citizens and bolster small businesses, aligning with national priorities for a healthier society.
NationPress
04/09/2025
Frequently Asked Questions
What are the key changes in the GST reforms?
The GST reforms have reduced the tax slabs from four to two, eliminating the 12% and 28% rates while retaining 5% and 18%. Essential drugs and health products will now have reduced or zero tax.
When will these changes take effect?
The revised GST rates for services will be implemented starting September 22.
How will this impact healthcare costs?
The reforms aim to lower healthcare costs significantly by reducing the tax burden on essential medicines and health-related products.
What is the government's commitment regarding healthcare?
The government reaffirms its dedication to the poor and middle-class citizens by making essential healthcare more affordable.
Will these reforms affect small businesses?
Yes, the GST reforms are expected to empower small businesses by reducing costs and enhancing the ease of doing business across the country.
