Mumbai (Maharashtra) [India], September 21 : Ahead of the Goods and Services Tax (GST) reforms that is set to take effect on Monday Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance (IPA), lauded the GST cut in the health sector and called it a "transformative shift" for the industry.
According to a statement by the IPA, the GST reforms announced by Prime Minister Narendra Modi will make healthcare more affordable and accessible for every citizen.
Most medicines, earlier taxed at 12 per cent, will now attract just 5 per cent GST. In addition, 36 critical life-saving drugs for cancer, genetic and rare diseases, and cardiovascular conditions have been fully exempted (zero per cent GST). The GST Council has also rationalised tax slabs on health and life insurance premiums, glucometers, and corrective spectacles.
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, the statement 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.
The GST Council brought the GST reforms, slashing the 12 and 28 per cent slabs, which will come into effect on Monday. Union Finance Minister Nirmala Sitharaman announced the decision on September 3, after she chaired the GST council meeting.
In the medical sector, the reduced rates on medicines and medical devices are aimed at improving access to healthcare and supporting domestic manufacturing in the pharma and medical equipment sectors.
The 12 per cent GST on 33 life-saving drugs and diagnostic kits was reduced to zero. GST on other medicines, including Ayurveda, Unani and Homoeopathy, was slashed from 12 per cent to 5 per cent.
Among the medical equipment, GST on spectacles and corrective goggles was reduced from 28 per cent to 5 per cent. The 12 to 18 per cent tax rates on Medical oxygen, thermometers, and surgical instruments were cut to 5 per cent, and the GST on Medical, dental, and veterinary devices was rationalised from 18 per cent to 5 per cent.