In a significant policy move aimed at enhancing healthcare affordability and accessibility, the Goods and Services Tax (GST) Council has announced a comprehensive set of tax rationalisation measures spanning pharmaceuticals, medical devices, health insurance, fitness services, and nutrition, among others. These are expected to lessen treatment costs, ease the financial strain on patients, and promote preventive care, say stakeholders.

Union Health Minister JP Nadda, writing on social media platform X, said the changes would “enhance ease of living, benefit various industries, and provide much-needed relief across the healthcare ecosystem and beyond.”

Following the GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, the GST on 33 critical cancer drugs and select medicines for rare diseases has been brought down from 12 percent to zero, with effect from September 22.

“GST on 33 life-saving medicines has been reduced to nil from 12 per cent,” Sitharaman said, underscoring the alignment of the move with Prime Minister Narendra Modi’s Independence Day August 15, 2025 pledge to make healthcare more accessible.

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