From cancer drugs to glucometers, patients to save more after GST cuts

GST Council removed tax on 33 life-saving drugs and slashed GST on all medicines and medical devices to 5%, easing treatment costs and improving healthcare access

Patients battling cancer, rare diseases, diabetes, and other chronic conditions are set to benefit from lower treatment costs after the Goods and Services Tax (GST) Council slashed tax rates on medicines and medical equipment. The decision, announced Wednesday, is expected to ease the financial burden on millions of households struggling with healthcare expenses. 

The Council, chaired by Union Finance Minister Nirmala Sitharaman, removed GST altogether on 33 life-saving drugs used for treating cancer and rare illnesses, bringing the rate down from 12 per cent to zero. Three other critical medicines that were previously taxed at 5 per cent have also been made tax-free. 

 

For patients requiring routine medication, GST on all other drugs has been reduced from 12 per cent to 5 per cent. Essential medical devices and supplies, including diagnostic kits, surgical apparatus, glucometers, bandages, dental tools, and oxygen equipment, will now also attract just 5 per cent GST, compared with the earlier 12–18 per cent. The new rates will take effect from 22 September, coinciding with the start of Navratri. 

 

Industry leaders underlined how the reforms would ease the burden on patients. Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, said, “Exempting life-saving and cancer medicines from GST brings direct relief to families. The reduction of GST on other medicines from 12 per cent to 5 per cent will ease treatment costs and improve availability across healthcare settings.”

 

Ameera Shah, President of Nathealth and Promoter and Executive Chairperson of Metropolis Healthcare, added that lower costs would boost early detection and access to quality care. “This measure will enhance access to healthcare services, support preventive health, and bring consistency across treatment categories,” she said.

 

Patients dependent on regular diagnostic tests and medical devices will also see reduced bills. Himanshu Baid, Managing Director of Poly Medicure, described the move as “transformative,” saying it would expand access to essential MedTech products and strengthen affordability in hospitals and clinics.

 

“By reducing GST on diagnostic kits, reagents, surgical apparatus, and other critical MedTech products, the Council has directly lowered treatment costs and expanded access. This step will strengthen India’s healthcare system and advance the vision of affordable healthcare for all,” Baid added. 

 

Sushil Suri, CMD of Morepen Labs, pointed to the benefit for India’s large diabetic population. “Bringing down tariffs on glucometers, test strips, thermometers, diagnostic kits, and medical-grade oxygen to 5 per cent is a big relief for patients, particularly in a country often called the diabetic capital of the world,” he said.

 

While industry bodies such as AiMeD flagged the need for faster refunds and transition measures, they stressed that patients would ultimately benefit as companies plan to pass on the tax savings through lower MRPs.

 

Rajiv Nath, Forum Coordinator, AiMeD, said patients would benefit if refunds were processed efficiently. “The reduction to 5 per cent is welcome, but timely refunds on accumulated GST are essential to ensure that cost savings are passed on. With quick refunds and a smooth transition, patients will see lower MRPs and better access to affordable medical devices,” he said.

 

Experts said the reform represents a shift in how taxation supports public health. Manoj Mishra of Grant Thornton Bharat LLP said, “Nearly 36 life-saving drugs are now exempt, while all formulations are at a manageable 5 per cent. This isn’t just tax policy—it is a lifeline that ensures affordability is never compromised.”

 

With the new structure, healthcare observers believe households will feel the difference not just in hospitals but also in pharmacies and diagnostic centres. Preventive and routine care, often neglected due to high costs, may now become more accessible to the common person.