“Affordable Healthcare – Relief for Patients, New Hope for the Medical Sector!”
Detailed Information on GST Rate Changes
Key Points
1. New GST Structure
GST is now simplified into only 3 slabs:
5% (merit rate) – Essential goods, medicines, healthcare items.
18% (standard rate) – Most other goods and services.
40% (de-merit rate) – Luxury and “sin goods.”
2. Medical Equipment and Devices
Earlier taxed at 12% or 18%, now uniform 5% GST.
This includes:
Equipment for medical, surgical, dental, and veterinary purposes.
Instruments for physical and chemical analysis.
Diagnostic kits and reagents.
Surgical instruments, glucometers, and test strips.
Thermometers and medical-grade oxygen.
3. Medicines and Life-Saving Drugs
33 life-saving drugs – reduced from 12% to 0% (nil GST).
3 special drugs (for cancer, rare diseases, chronic conditions) – reduced from 5% to 0% (nil GSt
3. Medicines and Life-Saving Drugs
33 life-saving drugs – reduced from 12% to 0% (nil GST).
3 special drugs (for cancer, rare diseases, chronic conditions) – reduced from 5% to 0% (nil GST).
All other medicines and drugs – now 5% GST.
4. Insurance
Health insurance (individual, family floater, senior citizen) and life insurance – now completely 0% GST.
5. Industry Reaction
The medical devices industry has welcomed the move to 5% GST.
They have demanded clarity on HS codes and faster refunds to ensure smooth implementation.
Benefits
Lower treatment costs for patients – medicines and medical equipment will be cheaper.
Cheaper diagnosis and disease control – glucometers, test kits, oxygen more affordable.
Affordable eye care – spectacles, contact lenses, intraocular lenses reduced from 28% to just 5%.
Hospitals and clinics benefit – easier operations, reduced costs.
Relief before festivals – rates effective from 22 September 2025.
Summary Table
Category Previous GST Rate New GST Rate
Medical equipment & devices 12% / 18% 5%
Most medicines 12% 5%
33 life-saving drugs 12% 0%
3 special drugs (cancer/rare disease) 5% 0%
Health & life insurance Standard slab 0%
