In a landmark reform aimed at enhancing healthcare affordability across India, the GST Council, under the leadership of Finance Minister Nirmala Sitharaman, has approved sweeping changes to the Goods and Services Tax (GST) structure. Beginning September 22, 2025, the revamped GST 2.0 brings significant relief by completely exempting 33 lifesaving medications—previously taxed at 12%—and three critical drugs for cancer and rare diseases, which had been taxed at 5%.

Most other medicines will now attract a reduced rate of 5% GST, down from the previous 12%, while medical devices, diagnostic kits, and related healthcare products will also benefit from considerable cuts—typically down to 5%. Additionally, individual life and health insurance premiums have been exempted from GST, bringing down the rate from 18% to zero.

This reform package is being hailed as a game-changer for Indian patients and households, particularly those facing long-term or expensive treatments. By eliminating GST on high-end therapies, the government is reducing out-of-pocket expenditure and enabling broader access to critical healthcare.

List of Lifesaving Drugs Now at 0% GST

According to official releases and industry reports, the following medications have been moved to GST-free status:

Previously 5% GST — Now 0%:

• Agalsidase Beta
• Imiglucerase
• Eptacog alfa (activated recombinant coagulation factor VIIa)

Previously 12% GST — Now 0%:

• Onasemnogene abeparvovec
• Asciminib
• Mepolizumab
• Pegylated Liposomal Irinotecan
• Daratumumab (including subcutaneous)
• Teclistamab
• Amivantamab
• Alectinib
• Risdiplam
• Obinutuzumab
• Polatuzumab vedotin
• Entrectinib
• Atezolizumab
• Spesolimab
• Velaglucerase Alpha
• Agalsidase Alfa
• Rurioctocog Alpha Pegol
• Idursulphatase
• Alglucosidase Alfa
• Laronidase
• Olipudase Alfa
• Tepotinib
• Avelumab
• Emicizumab
• Belumosudil
• Miglustat
• Velmanase Alfa
• Alirocumab
• Evolocumab
• Cystamine Bitartrate
• CI-Inhibitor injection
• Inclisiran

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What This Means for Patients and Healthcare Sector

• Direct Cost Savings: Patients undergoing treatment—especially for chronic conditions—will experience tangible savings. For instance, a ₹1 lakh medicine previously costing ₹1.12 lakh (inclusive of 12% GST) will now be ₹1 lakh—a straight ₹12,000 saving per dose.
• Wider Accessibility: With lower drug and device costs, hospitals, clinics, and pharmacies can expand access and optimize resource allocation.
• Economic Relief: Lower household healthcare bills and insurance premiums will ease financial burdens and support long-term treatment affordability.
• Implementation Caveats: The benefit hinges on timely revisions of retail prices, MRP updates, and transparency from manufacturers and retailers. Ensuring distributors pass on the savings remains crucial.