GST cut on drugs and medical devices to provide relief to patients: Industry players
New Delhi: The government’s decision to slash GST on medicines and medical devices while exempting lifesaving drugs from the levy has been hailed as a landmark reform by the pharmaceutical and healthcare industry. Stakeholders said on Thursday that the move will bring direct relief to patients and families while substantially easing their financial burden.
Industry leaders noted that the reforms will improve affordability, expand access to quality healthcare, and align with the government’s vision of universal healthcare. Indian Pharmaceutical Alliance Secretary General Sudarshan Jain said exempting cancer and lifesaving drugs from GST will immediately ease costs for families. “Equally, the reduction in GST on a wide range of medicines from 12 per cent to 5 per cent will make essential therapies more affordable,” he added.
Organisation of Pharmaceutical Producers of India (OPPI) Director General Anil Matai described the reform as “historic and compassionate,” pointing out that 33 essential drugs have moved from 12 per cent GST to nil, while three critical medicines for cancer, rare diseases, and other severe conditions have shifted from 5 per cent to nil. He said the reductions on medicines, diagnostic kits, surgical devices, and healthcare supplies would make healthcare more accessible across households and hospitals.
“This move realigns the GST structure, prioritises patient well-being, and strengthens India’s journey towards universal health coverage,” Matai added.
NATHEALTH President and Metropolis Healthcare Executive Chairperson Ameera Shah said standardising GST rates would support preventive, curative, and rehabilitative care. “By easing costs, the measure will enhance access to services, promote early disease detection, and ensure consistency across the healthcare ecosystem,” she said.
Apollo Health Co Ltd Executive Chairperson Shobana Kamineni welcomed zero GST on health and life insurance, calling it “a masterstroke” that makes protection a right rather than a privilege.
Industry leaders unanimously called the reforms a transformative step toward building a patient-centric, equitable, and resilient healthcare system in India.
