The 56th GST Council meet on Wednesday brought forth an array of reforms which citizens are set to benefit immensely from. One of the most significant of these is the government’s decision to exempt life-saving drugs from the levy while cutting GST on medical devices and other categories of drugs.
Not only will this step bring relief to patients and their families, improve accessibility of medicines and quality healthcare, it will also reduce the financial strain on healthcare providers, opined pharmaceuticals and healthcare industry players on Thursday.
The Council has brought GST on 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. The GST on a wide range of medical apparatus, diagnostic kits, surgical devices, and healthcare supplies has also been slashed.
"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 per cent to 5 per cent will help ease the overall treatment burden and make essential therapies more affordable," said Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance.
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"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,” said Anil Matai, Director General, Organisation of Pharmaceutical Producers of India (OPPI).
"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 added.
Ameera Shah, President, NATHEALTH, and Executive Chairperson, Metropolis Healthcare Ltd, said the government’s decision will also support early disease detection and “bring greater consistency by standardising GST rates across preventive, curative and rehabilitative care.”
Meanwhile, Shobana Kamineni, Executive Chairperson, Apollo Health Co Ltd, said “zero GST on health and life insurance is a masterstroke”.
“It makes protection a right, not a privilege,” she said, adding reductions in medicines and supplies will bring affordable care to every household.
“By putting empathy and the middle class at the centre-stage, the government has enabled millions to access healthcare with dignity."
The industry players termed the landmark GST reforms as a decisive stride towards building a patient-centric, equitable, and resilient healthcare system in India.
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