GST Reforms Slash Healthcare Costs: Life-Saving Drugs, Medical Devices Now Cheaper
Calling the recent Goods and Services Tax (GST) reforms truly next-generation, Union Health Minister J.P. Nadda said on Thursday that the changes will help lower healthcare costs and support the vision of a fit and healthy Bharat.
The GST Council, chaired by Finance Minister Nirmala Sitharaman, announced on Wednesday a major restructuring of the indirect tax system. The existing four-rate structure has been streamlined to two slabs, 5 per cent and 18 per cent, with the elimination of the 12 per cent and 28 per cent categories.
Under the revised framework, essential medicines, healthcare products, and certain medical devices will now attract a reduced GST of 5 per cent or be entirely exempt from tax, down from the earlier 12 per cent or 18 per cent.
The updated GST rates on services will come into effect starting September 22.
"Historic GST reforms under the visionary leadership of PM Narendra Modi Ji mark a giant step towards affordable healthcare for all," Nadda shared in a post on the social media platform X.
He highlighted that "essential drugs and devices will have 5 per cent/Nil GST. Health and life insurance is exempted from GST. Cheaper spectacles and diabetic foods. This is a true next-gen GST for a healthy India".
Further, GST has also been reduced for medicines, medical devices, and diagnostics. Gyms and wellness services made affordable points out that "preventive health is priority -- towards a Fit & Healthy Bharat", Nadda said.
These next-gen GST reforms will support ongoing growth and development, he said.
On zero GST on life-saving drugs, including cancer and rare disease treatment, the Health Minister stated that the "reforms reaffirm our government’s commitment to the poor and middle class".
"Reduced tax rates on several essential products will enhance ease of living, help families manage costs, and bring relief to different sectors," he said.
Beyond boosting health services, Nadda said that these reforms will also "strengthen the ease of doing business and empower small businesses across the country".
"PM Narendra Modi Ji’s vision of Ease of Living shines in GST rationalisation," he said.
Dr Bhumika Maikhuri is a Consultant Orthodontist at Sanjeevan Hospital, Delhi. She is also working as a Correspondent and a Medical Writer at Medical Dialogues. She completed her BDS from Dr D Y patil dental college and MDS from Kalinga institute of dental sciences. Apart from dentistry, she has a strong research and scientific writing acumen. At Medical Dialogues, She focusses on medical news, dental news, dental FAQ and medical writing etc.