Lower GST on Medical Devices and Medicines to Cut Healthcare Costs in India

by Suryaa |

New Delhi: Healthcare experts have welcomed the GST Council’s decision to cut tax on medical devices and medicines, saying it will make treatment more affordable across India.

Earlier this month, the GST on medical devices and most medicines was reduced from 12% to 5%. In addition, 36 life-saving drugs for cancer, rare diseases, and heart conditions are now fully exempt from tax. Tax rates on health insurance, glucometers, and corrective spectacles have also been revised.

The Association of Indian Medical Device Industry (AiMeD) called the step “transformative,” thanking Prime Minister Narendra Modi for making devices more affordable. The group also promised to pass on the benefits to patients, hospitals, and labs by offering affordable, high-quality, Made-in-India products.

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance (IPA), said the move will bring direct savings to patients and reduce the burden on families. He added that the industry is committed to ensuring the benefits reach citizens quickly and transparently.

Experts say the reforms will lower treatment costs, improve access to essential care, and strengthen India’s healthcare system.