GST Rate Cuts on Medicines & Healthcare – GST Council 56th Meeting 2025

GST Rate Cuts on Medicines & Healthcare – 56th GST Council Meeting

The 56th GST Council Meeting, held on 3rd September 2025, announced historic relief measures for the healthcare and pharmaceutical sector. With immediate focus on life-saving drugs, essential medicines, diagnostic kits, and medical equipment, the GST Council reduced rates drastically, making treatment more affordable for patients across India.

Additionally, the Council approved import exemptions for special government needs, including an armoured sedan car for the President’s Secretariat.

All changes will be effective from 22nd September 2025.

---

💊 GST Cuts on Life-Saving Drugs

The Council decided to lower or completely exempt GST on certain critical medicines:

1. Rare Disease Treatment Drugs
   • Onasemnogene (for Spinal Muscular Atrophy)
   • Daratumumab (for cancer treatment)
   • Alectinib (for lung cancer treatment)
   • Old Rate: 12%
   • New Rate: Nil

✅ Patients suffering from rare diseases and cancer will now save thousands in treatment costs.

---

🩺 GST Reductions on Essential Medicines

• Broad-spectrum antibiotics, insulin, vaccines, and pain management drugs
  • Old Rate: 12%
  • New Rate: 5%

✅ This will make routine medicines cheaper for households and hospitals.

---

🧪 GST Cuts on Diagnostic Kits & Medical Equipment

1. Diagnostic Kits (Covid, malaria, TB, etc.)

   • Old Rate: 12%
   • New Rate: 5%

2. Medical Devices & Equipment

   • Oxygen concentrators, thermometers, ECG machines, diagnostic devices
   • Old Rate: 18%
   • New Rate: 5%

✅ This change helps hospitals and labs lower testing & treatment costs.

---

🏥 GST Relief for Hospitals & Patients

The healthcare industry welcomed the decisions:

• Hospitals will spend less on critical equipment.
• Patients will face reduced bills for tests and treatments.
• Pharma companies expect higher demand for affordable medicines.

---

🚘 Special GST Exemption – Armoured Sedan for President’s Secretariat

The GST Council also approved a one-time GST exemption on the import of a custom-built armoured sedan car for the President’s Secretariat.

• Purpose: To ensure high-level security.
• GST Payable: Nil.

Though unrelated to healthcare, this decision falls under special government import exemptions.

---

📉 Impact on Pharma & Healthcare Sector

• Patients: Direct savings on medicines and medical tests.
• Hospitals: Reduced operational costs due to cheaper medical devices.
• Pharma Industry: Boost in demand for affordable medicines, especially in rural India.
• Government Healthcare Schemes: Programs like Ayushman Bharat will benefit as treatment costs fall.

---

FAQs on Pharma & Healthcare GST Cuts

Q1. From when are the new GST rates on medicines effective?
All changes are effective from 22nd September 2025.

Q2. Which medicines are exempted from GST now?
Life-saving drugs such as Onasemnogene, Daratumumab, and Alectinib are now Nil-rated.

Q3. What is the new GST rate on diagnostic kits?
Diagnostic kits for diseases like Covid, TB, and malaria will attract 5% GST instead of 12%.

Q4. Did medical equipment GST rates change?
Yes. Equipment such as oxygen concentrators, thermometers, and ECG machines are now under 5% GST instead of 18%.

Q5. Why was the President’s Secretariat car exempted?
The GST exemption was given due to security requirements, making the import duty-free.

---

📩 Stay Updated with Khabre360

Enjoying this article? Get the latest news, Bollywood buzz, finance & tech updates straight to your inbox.