Govt Removes GST on 33 Critical Life-Saving Medicines

The GST Council has removed the 12% Goods and Services Tax (GST) on 33 high-cost life-saving drugs and diagnostic kits, resulting in these items being tax-free and thus relieving the burden on patients. Besides, the council has also slashed the GST on essential medicines under Ayurveda, Unani, and Homoeopathy to 5% from 12% previously.

The decision also covers medical devices. GST on spectacles and contact lenses has been lowered to 5% from 28%, while medical oxygen, thermometers, and surgical instruments will carry only 5% tax as against 12–18% earlier. The tax on the devices used in medical, dental, and veterinary has also been cut to 5% from 18%, significantly reducing the healthcare costs in all sectors.

The list of the drugs exempted from taxes includes the medicines used to treat multiple myeloma, lung cancer, lymphoma, hemophilia, Gaucher disease, Pompe disease, and other rare conditions. 

Also Read: Novo Nordisk to End rDNA Insulin Product Sales in India

Agalsidase Beta, Imiglucerase, Eptacog alfa activated recombinant coagulation factor VIIa, Osemertinib mesylate, Alectinib, Mogamulizumab, Pegylated Liposomal Irinotecan, Daratumumab, Daratumumab subcutaneous, Tofacitinib, Avatrombopag, Alectinib, Risankizumab, Obinutuzumab, Pentosanum polysulfate sodium, Eltrombopag, Atezolizumab, Spesolimab, Vigaliximab,  AlphaAsfotase, AlfaRurioctocog, Alfa Pegol, Idursulfase, Alglucosidase Alfa, Lanadelumab, Olipudase Alfa, Teplizumab, Avalglucosidase Alfa, Emicizumab, Bortezomib, Meplazumab, Vestronidase Alfa, Alituzumab, Eculizumab, Cystamine Bitartrate, C1-Inhibitor injection and Infliximab.

Union Finance Minister Nirmala Sitharaman referred to the exemption as a welfare measure for the public, thereby, providing a level playing field to treatment. The leaders in the healthcare sector and the associations of the industry have rapturously received the reform, describing it as a revolutionary step towards affordable and inclusive healthcare in India.