The council, chaired by Union Finance Minister Nirmala Sitharaman, announced that GST on 33 life-saving drugs used in the treatment of critical illnesses such as cancer and certain rare diseases has been cut to zero from the existing 12%.
Additionally, three other vital drugs that earlier attracted a 5% GST have now been made fully tax-exempt.
Tax relief has also been extended to a wider range of healthcare products. GST on medical equipment such as diagnostic kits, blood glucose monitors, surgical devices, and bandages has been reduced from 12% to 5%.
Currently, the GST system has four slabs, 5%, 12%, 18%, and 28%. The new structure will come into effect from September 22.
“These reforms have a multi-sectoral and multi-thematic focus, aimed at ensuring ease of living for all citizens and ease of doing business for all,” FM Sitharaman said after the GST Council meeting.
India introduced the Goods and Services Tax (GST) on July 1, 2017, in a landmark midnight session at Parliament’s Central Hall. Rolled out by Prime Minister Narendra Modi and then President Pranab Mukherjee, the reform was built on the principle of “one nation, one tax, one market,” and marked freedom from a complex web of indirect taxes.
