Healthcare Set To Be More Affordable As New GST Rate Kicks In From Sept 22: Pharma Industry
"These measures mark a transformative shift in India's healthcare landscape, delivering direct savings to patients, easing the burden on families, improving access to essential care, and strengthening healthcare security," IPA says.
Medicines, including some life saving drugs, and medical devices are set to become cheaper from Monday with the new GST rates kicking in, making healthcare more affordable and accessible for every citizen, according to industry players.
With the landmark GST reforms announced by Prime Minister Narendra Modi coming into effect from Sept. 22, it will make healthcare more affordable and accessible for every citizen, Indian Pharmaceutical Alliance Secretary General Sudarshan Jain said.
"Most medicines, earlier taxed at 12%, will now attract just 5% GST. In addition, 36 critical life-saving drugs for cancer, genetic and rare diseases, and cardiovascular conditions have been fully exempted," he added.
The GST Council has also rationalised tax slabs on health and life insurance premiums, glucometers, and corrective spectacles, Jain said.
"These measures mark a transformative shift in India's healthcare landscape, delivering direct savings to patients, easing the burden on families, improving access to essential care, and strengthening healthcare security," he added.
Jain further said, "The Indian Pharmaceutical Alliance (IPA), representing 23 leading research-driven companies, is fully committed to ensuring these benefits reach citizens swiftly and transparently, advancing our mission of affordable and accessible healthcare for all."
Earlier, Organisation of Pharmaceutical Producers of India (OPPI) Director General Anil Matai had stated that the decision to reduce GST on lifesaving medicines — bringing 33 essential drugs from 12% tax slab to nil and three critical drugs for cancer, rare diseases, and other severe chronic conditions from 5% to nil — is both historic and compassionate.
The bold step will significantly reduce the financial strain on patients and families and make healthcare more affordable and accessible at every level — from hospitals to households, he said.
Similarly, NATHEALTH President, and Executive Chairperson, Metropolis Healthcare Ltd, Ameera Shah also noted that by easing costs and improving affordability, the measure will enhance access to quality healthcare services, support early disease detection, and bring greater consistency by standardising GST rates across preventive, curative and rehabilitative care.
