GST on lifesaving drugs reduced to nil: Check full list of tax on medicines

GST Council meet outcome: GST on various medical apparatus and devices used for medical, surgical, dental or veterinary usage has been reduced to 5% from 12%

Finance Minister Nirmala Sitharaman announced a major overhaul in the Goods and Services Tax (GST) regime on Wednesday evening, bringing much relief to the common man. The GST regime will now have two tax slabs — 5 per cent and 18 per cent, with 40 per cent special slab for super luxury and sin items.

 

Among the most important changes was the reduction of GST on lifesaving drugs and medicines. GST on 33 lifesaving drugs and medicines has been reduced to 'nil' from 12 per cent, and 'nil' from 5 per cent on three lifesaving drugs and medicines used for the treatment of cancer, rare diseases, and other severe chronic diseases. 

Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, said, "The Indian Pharmaceutical Alliance welcomes the government’s decision to exempt life-saving and cancer medicines from GST, a step that will bring direct relief to patients and their families. Equally, the reduction in GST on a wide range of medicines from 12 per cent to 5 per cent will help ease the overall treatment burden and make essential therapies more affordable.

 

 

He added: "These reforms will improve the accessibility of medicines, ensure wider availability across healthcare settings, and contribute positively to the Government’s vision of affordable healthcare for all. The pharmaceutical industry remains committed to working alongside policymakers to further enhance patient access and advance India’s healthcare outcomes."

 

 

GST has been reduced to 5 per cent from 12 per cent on all other drugs and medicines.

GST on medical apparatus and devices

 

GST on various medical apparatus and devices used for medical, surgical, dental or veterinary usage or for physical or chemical analysis has been reduced to 5 per cent from 12 per cent. 

 

This includes: Glands and other organs for organo-therapeutic uses, dried, whether or not powdered; extracts of glands or other organs or of their secretions for organo-therapeutic uses; heparin and its salts; other human or animal substances prepared for therapeutic or prophylactic uses, not elsewhere specified or included. 

 

Animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, whether or not obtained by means of biotechnological processes; toxins, cultures of micro-organisms (excluding yeasts) and similar products.

 

Additionally, GST on various medical equipment and supplies devices such as wadding gauze, bandages, diagnostic kits and reagents, blood glucose monitoring system (Glucometer) medical devices, etc, has been reduced to 5 per cent from 12 per cent. 

 

Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes, will be taxed at 5 per cent.

 

Other items taxed at 5 per cent are: pharmaceutical goods including sterile surgical catgut, similar sterile suture materials (including sterile absorbable surgical or dental yarns) and sterile tissue adhesives for surgical wound closure; sterile laminaria and sterile laminaria tents; sterile absorbable surgical or dental haemostatics; sterile surgical or dental adhesion barriers, whether or not absorbable; Waste pharmaceuticals other than contraceptives.

 

GST on medicines and lifesaving drugs reduced

 

Check full list here:

 

Following drugs have been moved from 5 per cent to NIL (3)

 

• Agalsidase Beta
• Imiglucerase
• Eptacog alfa activated recombinant coagulation factor VIIa

 

Following drugs have been moved from 12 per cent to NIL (33)

 

• Onasemnogene abeparvovec
• Asciminib
• Mepolizumab
• Pegylated Liposomal Irinotecan
• Daratumumab
• Daratumumab subcutaneous
• Teclistamab
• Amivantamab
• Alectinib
• Risdiplam 
• Obinutuzumab
• Polatuzumab vedotin
• Entrectinib
• Atezolizumab
• Spesolimab
• Velaglucerase Alpha
• Agalsidase Alfa
• Rurioctocog Alpha Pegol
• Idursulphatase
• Alglucosidase Alfa
• Laronidase
• Olipudase Alfa
• Tepotinib
• Avelumab
• Emicizumab
• Belumosudil
• Miglustat
• Velmanase Alfa
• Alirocumab
• Evolocumab
• Cystamine Bitartrate
• CI-Inhibitor injection
• Inclisiran

 

Following drugs have been moved to 5 per cent  from 12 per cent

 

All Drugs and medicines including:

 

• Fluticasone Furoate + Umeclidinium + Vilanterol FF/UMEC/VI
• Brentuximab Vedotin
• Ocrelizumab
• Pertuzumab
• Pertuzumab + trastuzumab
• Faricimab