GST Cuts Makes Healthcare Affordable: Pre-Diwali Gift For Citizens

PharmaGenDRx News Bureau- 5th September, 2025

11:00 AM IST

The Indian government has announced a landmark Next-Generation GST reformation, delivering a significant boost to the healthcare and pharmaceutical sector.The life and health insurance premiums are now tax free for citizens as they have been exempted from GST charges.

Addressing public health and affordability of medical care, commonly used medical essentials such as thermometers, diagnostic kits, reagents, glucometers, corrective spectacles and medical grade oxygen which demanded 12-18% GST earlier are now reduced to only 5% GST. By rationalising GST slabs, the government has ensured that critical medical products and insurance services are within easier reach of the common citizen. This move would make healthcare accessible at a reasonable price across the nation.

The government also encouraged local manufacturers of medical devices, diagnostic products and pharma inputs with the vision of Aatmanirbhar Bharat. The healthcare sector has recognised this step which would promote inclusive growth in India’s health ecosystem.

By Arundhuti Chatterjee & Sharon Bose