GST Reduction on Healthcare Sector; to be Effect from 22 Sept 2025

India’s GST council has announced a significant reduction in the tax on a wide range of health products and services. A feature aimed at making medical treatment more affordable for the ordinary person. The changes, which are part of a broader rationalization of the GST structure, are set to take effect from September 22, 2025. 

Relief in Healthcare Sector#NextGenGST pic.twitter.com/xyMlr87HBQ

— CBIC (@cbic_india) September 3, 2025

What is Cheaper? 

The most notable reductions are on essential and life-saving items: 

• Medicines: The GST on 33 life-saving drugs, including cancer and rare diseases, have been brought from the last 12% to Nil (0%). In addition, the tax on all other drugs is less than 12%, more affordable 5%. 

• Medical Equipment: GST has been reduced on a comprehensive list of medical devices and supply. Items such as diagnostic kits, surgical instruments, glucometers and their test strips, straps and oxygen equipment will now have only 5% GST, which are below the previous rates of 12% and 18%. 

• Health Insurance: In a great relief for families, all personal health insurance policies, including family floater plans and senior citizens, are now fully exempted from GST, which was earlier charged at 18%. 

These cuts are expected to provide adequate financial relief to millions of patients and their families, which improves access to important health services and products across the country. 

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