NEW DELHI: Union Health Minister JP Nadda on Thursday hailed the GST cut on lifesaving medicines and medical devices, and the raised taxes on pan masala, tobacco products, cigarettes and sugary drinks, saying “this is a big win for public health.”
In a series of posts on X, Nadda said Prime Minister Narendra Modi’s next gen GST reforms reaffirm the government’s commitment to the poor and middle class.
Union Finance Minister and GST Council head Nirmala Sitharaman on Wednesday announced nil GST on 36 life-saving drugs, including cancer and rare disease treatment; zero GST on health and life insurance; exemptions on spectacles; thermometer; medical grade oxygen; all diagnostic kits and reagents; glucometer and test strips.
Lauding the move, Nadda said, “This is a true #NextgenGST for a healthy India!”
“Healthcare costs will reduce, lives will improve!,” he added.
“The GST Council has raised tax on pan masala, tobacco products, cigarettes & sugary aerated drinks to 40%. A strong health-positive step — discouraging harmful consumption, reducing NCD burden, and protecting future generations,” Nadda further posted.
Noting that with drugs and medical devices becoming cheaper along with spectacles and fitness and nutrition within reach of people, Nadda said affordable healthcare is a people’s mandate delivered by PM Modi’s government with #NextGenGST reforms.
“This is a decisive step to make Swasthya Bharat, Samruddh Bharat a reality.”
“From prevention to cure — every Indian will benefit from this #NextGenGST,” he posted, adding that GST reforms are people-first and health-positive. “Preventive health is a priority – towards a Fit and Healthy Bharat.”
The GST cut in life-saving drugs and medical devices was also welcomed by both industry and doctor's bodies.
Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, said the government's decision to exempt life-saving and cancer medicines from GST is a step that will bring direct relief to patients and their families. “Equally, the reduction in GST on a wide range of medicines from 12% to 5% will help ease the overall treatment burden and make essential therapies more affordable.”
“These reforms will improve the accessibility of medicines, ensure wider availability across healthcare settings, and contribute positively to the government’s vision of affordable healthcare for all. The pharmaceutical industry remains committed to working alongside policymakers to further enhance patient access and advance India’s healthcare outcomes.”
Anil Matai, Director General, the Organisation of Pharmaceutical Producers of India (OPPI), said that the decision to reduce GST on lifesaving medicines - bringing 33 essential drugs from 12 per cent to nil and three critical drugs for cancer, rare diseases, and other severe chronic conditions from five per cent to nil - is both historic and compassionate.
“This bold step will significantly reduce the financial strain on patients and families,” he said.
Ameera Shah, President NATHEALTH, an apex body representing the Indian healthcare industry, and Executive Chairperson Metropolis Healthcare Ltd, said that by easing costs and improving affordability, the measure will enhance access to quality healthcare services, support early disease detection, and bring greater consistency by standardising GST rates across preventive, curative and rehabilitative care.
Dr. Dilip Bhanushali, National President, Indian Medical Association (IMA), which represents over four lakh doctors in India, also welcomed the zero GST in 36 life-saving drugs, including cancer. He said IMA had appealed to Sitharaman in a letter, dated August 25, for complete exemption of GST on a broad category of essential and lifesaving drugs, including anti-cancer medications, anti-diabetic drugs, antihypertensives and cardiac medications.
Dr. Aashish Chaudhry, Managing Director, Aakash Healthcare, said the overhaul in GST will translate into significant savings for patients, reduced out-of-pocket costs, and better adherence to treatment, ultimately improving health outcomes across the country.
Dr. Aakaar Kapoor, Founder and CEO, City Imaging and Clinical Labs, also said the GST reduction on medical equipment and diagnostic kits comes as a big relief for the healthcare sector.
He, however, appealed to the government to consider making GST zero on all healthcare services and medical equipment, so that the sector can sustain, and continue delivering accessible, quality care.
Dr. Harsh Mahajan, FICCI Chairman-Health and Services and Founder Mahajan Imaging and Labs, expressed hope that the government would consider slashing GST on equipment maintenance service contracts from 18% to 5%.