How Will GST Reforms Enhance Affordability and Accessibility in Healthcare?
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Synopsis
Discover how the latest GST reforms will transform healthcare affordability and accessibility in India. Leading experts highlight the significant reductions in GST rates for essential medications and medical devices that promise to ease the financial burden on consumers. This pivotal change is set to redefine healthcare access for millions.
Key Takeaways
- GST rates for life-saving drugs reduced to 5% or zero.
- Essential medical devices now more affordable.
- Implementation date for changes: September 22.
- Lower and middle-class consumers will benefit the most.
- Healthcare access is set to improve significantly.
New Delhi, Sep 4 (NationPress) Experts in the healthcare sector have indicated that the recent Goods and Services Tax (GST) reforms are set to significantly enhance both affordability and accessibility within the healthcare sphere.
During a meeting of the GST Council, led by Finance Minister Nirmala Sitharaman, the decision was made to streamline the indirect tax framework. This revision has reduced the number of tax slabs from four to two, eliminating the 12 percent and 28 percent categories while maintaining the 5 percent and 18 percent slabs.
According to the new regulations, critical medications, health-related products, and certain medical devices will experience a reduction in tax rates from 12 percent or 18 percent to 5 percent or even zero.
Importantly, the GST rates for 33 cancer drugs and various rare medications have been decreased from 12 percent to zero percent.
The implementation of these GST rate changes for services is scheduled for September 22.
Rajiv Nath, Forum Coordinator for the Association of the Indian Medical Device Industry (AiMeD), expressed to IANS that this groundbreaking decision to lower the GST from 12 percent to 5 percent is a major win for consumers and patients. He emphasized that this reform will significantly enhance affordability and accessibility, ultimately reducing excess costs in healthcare.
Sushil Suri, Managing Director of Morepen Laboratories, noted that these reforms have been long-awaited and represent a substantial advancement for the nation. He referred to it as a big bonus for the common people, highlighting that many medicines have seen their GST rates drop from 12 percent to 5 percent, and some from 18 percent to 5 percent.
Himanshu Baid, Managing Director of Polymedicure, remarked that the government's decision to cut GST rates will make essential home care products more affordable. He pointed out that items such as thermometers, glucometers, blood pressure instruments, bandages, and diagnostic kits will now be taxed at 5 percent. This change is expected to greatly benefit the lower and middle classes who have been facing financial strain.
Point of View
It's imperative to recognize the profound impact of the GST reforms on healthcare access in India. By reducing tax rates on essential medicines and medical devices, the government is demonstrating a commitment to improving public health and alleviating financial burdens for millions. This proactive approach is vital in ensuring that healthcare remains accessible to all citizens, particularly the economically disadvantaged.
NationPress
19/10/2025
Frequently Asked Questions
What are the new GST rates for healthcare products?
The GST rates for life-saving drugs, health-related products, and some medical devices have been reduced to 5 percent or zero percent, down from 12 percent and 18 percent.
When will the new GST rates take effect?
The revised GST rates on services will be implemented starting September 22.
How will these reforms benefit consumers?
These reforms are expected to enhance affordability and accessibility, significantly reducing healthcare costs for consumers.
Who will benefit the most from the GST reforms?
The lower middle-class and middle-class populations, who have been struggling with healthcare costs, will benefit immensely from these changes.
What products are specifically affected by the GST rate cuts?
The rate cuts apply to life-saving drugs, diagnostic kits, and essential home care products like thermometers and glucometers.
