In a major boost to public health, the GST Council, chaired by Finance minister Nirmala Sitharaman, has slashed taxes on 33 lifesaving drugs and several critical medicines for cancer, rare diseases, and chronic illnesses. Here’s what the move means for patients and families.

1. GST on Lifesaving drugs Reduced to Zero

From 22 september 2025, 33 lifesaving drugs will have GST cut to 0%, including high-cost biologics and orphan drugs. Additionally, 3 critical medicines used for cancer and rare diseases will see their GST drop from 5% to nil. This measure directly reduces out-of-pocket expenses for patients undergoing long or repeated treatments like chemotherapy.

2. How Much Patients Will Save

For a drug priced at INR 1,00,000 with 12% GST, the total cost would have been INR 1,12,000. With the GST cut, the same drug will cost roughly INR 1,00,000, giving a direct saving equal to the removed tax. For patients on long-term therapies, these reductions can add up to substantial cumulative savings.

3. Other Medicines and Devices Also Cheaper

All other drugs and medicines: GST reduced from 12% → 5%

Medical devices & diagnostic kits: GST typically reduced to 5%

This broader rationalization ensures routine prescriptions, diabetic supplies, and hospital consumables are more affordable, easing household healthcare costs.

4. Complete List of 33 Lifesaving Drugs

From 5% to nil GST:

Agalsidase Beta

Imiglucerase

Eptacog alfa (activated recombinant coagulation factor VIIa)

From 12% to nil GST:

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

(For authoritative HSN codes and official list, see PIB annexure.)

5. Important Caveats for Patients

MRP vs invoice pricing: Some MRPs already include GST; retailers must revise price displays.

Manufacturer & distributor behaviour: Companies may adjust margins or repricing; regulators will monitor compliance.

Insurance & reimbursement: Lower billed prices can reduce co-payments and claims.

Availability vs affordability: Tax relief reduces cost but does not guarantee immediate availability.

6. Implementation Date

The GST cuts apply to goods and services from 22 september 2025, with operational guidelines and FAQs expected from the government soon.

7. Wider Implications

This move reduces catastrophic health expenditure, improves access to advanced therapies, and signals a policy focus on public health affordability. Combined with previous GST cuts on health insurance, it forms a two-pronged strategy to reduce out-of-pocket medical spending in India.

8. Bottom Line

For patients and families, these GST reductions translate to real financial relief, easier access to lifesaving treatments, and a step toward more equitable healthcare. The true impact, however, depends on transparent implementation across manufacturers, pharmacies, hospitals, and insurers.

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