GST Cuts On Medicines A Game Changer, Healthcare To Become More Affordable: Industry Players

New Delhi: The government's move to cut GST on medicines and medical devices while exempting lifesaving drugs from the levy is a bold step that will bring direct relief to patients and families while significantly reducing financial strain on them, pharmaceuticals and healthcare industry players said on Thursday.

The bold reforms will improve accessibility of medicines, ensure accessibility to quality healthcare and contribute positively to the government's vision of affordable healthcare for all, they 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, Indian Pharmaceutical Alliance Secretary General Sudarshan Jain said.

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'Equally, the reduction in GST on a wide range of medicines from 12 per cent to 5 per cent will help ease the overall treatment burden and make essential therapies more affordable,' he added.

Similarly, Organisation of Pharmaceutical Producers of India (OPPI) Director General Anil Matai said, '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 5 per cent to nil -- is both historic and compassionate. This bold step will significantly reduce the financial strain on patients and families.' Equally impactful are the reductions in GST on all other medicines to 5 per cent and on a wide range of medical apparatus, diagnostic kits, surgical devices, and healthcare supplies, he added.

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'This move will make healthcare more affordable and accessible at every level, from hospitals to households. By realigning the GST structure, the government has sent out a strong signal of prioritising patient well-being and strengthening India's journey towards universal health coverage,' Matai said.