New GST rates effective September 22, 2025, have ushered in dramatic reductions across healthcare essentials. Most medicines now attract only 5% GST (down from 12%), with life-saving drugs (36 categories) declared entirely GST-free. Critical treatments for cancer, rare diseases, and severe cardiovascular conditions are now more affordable.
The reforms mandate pharmaceutical manufacturers to lower MRPs and pass on benefits to patients. Furthermore, all health and life insurance premiums are exempt from GST, immediately reducing costs and making insurance more accessible, especially for middle-income households coping with healthcare inflation.
