The 56th GST Council meeting, held on 3rd September 2025, has brought major relief for patients battling critical illnesses. In a significant move, the Council announced GST exemptions and reductions on several life-saving medicines. This decision will make treatments for cancer, rare diseases, and chronic conditions more affordable for lakhs of patients across India.
💊 Life-Saving Drugs Now at 0% GST
Over 30 high-cost medicines have been fully exempted from GST. Some key drugs include:
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Onasemnogene Abeparvovec (for spinal muscular atrophy)
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Daratumumab (for multiple myeloma and cancers)
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Emicizumab (for hemophilia)
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Alectinib (for lung cancer)
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Obinutuzumab & Polatuzumab Vedotin (cancer therapies)
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Velaglucerase Alpha, Agalsidase Alfa, Miglustat (rare genetic disorders)
This exemption means patients will no longer bear the burden of indirect tax on these critical medicines.
💉 Other Medicines Reduced to 5% GST
Many other important drugs, earlier taxed at 12%, will now attract just 5% GST. This includes medicines like:
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Fluticasone Furoate + Umeclidinium + Vilanterol (respiratory treatment)
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Brentuximab Vedotin (cancer treatment)
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Ocrelizumab (multiple sclerosis)
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Pertuzumab & Trastuzumab (breast cancer)
This step will reduce treatment costs significantly for patients requiring long-term therapies.
🏥 Medical Equipment at Lower GST
Along with medicines, certain medical supplies have also seen a reduction:
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Wadding, gauze, bandages, dressings, plasters → now at 5% GST
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Sterile surgical goods like sutures and adhesives → 5% GST
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Medical grade oxygen, hydrogen peroxide, and diagnostic kits → 5% GST
This ensures hospitals and healthcare providers can offer more affordable care.
📅 Effective Date of GST Changes
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The reduced GST rates and exemptions will apply from 22nd September 2025.
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Patients, hospitals, and pharmacies will see the impact directly in billing after this date.
✅ Impact on Patients & Healthcare
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Patients: Reduced treatment costs, especially for cancer, rare diseases, and chronic illnesses.
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Hospitals: Lower procurement costs for essential medicines and medical supplies.
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Healthcare Industry: Encourages wider access to advanced therapies and improves affordability.
🔎 FAQs on GST Relief for Medicines
Q1. Which medicines are now tax-free?
👉 Over 30 life-saving medicines for cancer, rare diseases, and genetic disorders are fully exempt.
Q2. From when will the changes apply?
👉 New GST rates on medicines will be effective from 22nd September 2025.
Q3. Will this affect only imported drugs or also Indian-made ones?
👉 The exemption and reductions apply to both imported and domestically produced medicines listed under the new GST schedule.
Conclusion
The GST relief on medicines is a landmark decision by the Council, making healthcare more affordable for millions of Indians. By exempting and reducing taxes on life-saving drugs and medical supplies, the government has taken a people-first approach, ensuring that treatment costs for critical conditions are reduced significantly.