Under GST reforms, the tax on essential medicines was reduced from 12% to 5%, and 36 life-saving drugs became completely tax-free. This has made the treatment of diseases like diabetes, fatty liver, cancer, and asthma cheaper by up to 2 lakh rupees annually. Patients and their families will receive financial relief, and the pharmaceutical sector will also be boosted.
GST Rate Cut: Following the implementation of GST reforms in India, the tax on essential medicines was reduced from 12% to 5%, and 36 critical life-saving drugs were made tax-free. According to a study by the Indian Pharmaceutical Alliance, this will save lakhs of rupees annually for patients suffering from conditions like cancer, rare and genetic diseases, diabetes, asthma, and fatty liver. The new tax structure will also promote local production and provide relief to common people in healthcare expenses.
GST Reforms and Affordable Medicine Prices
After the implementation of the new GST rates, medicines previously taxed at 12% will now only incur a 5% tax. Additionally, 36 crucial life-saving drugs have been made completely tax-free. The IPA stated that this measure will provide financial assistance to patients from all social and economic strata, including middle-class families, patients requiring long-term care, and senior citizens. Specifically, patients treating conditions like diabetes and fatty liver could save up to approximately 2 lakh rupees.
Impact on the Health Sector
The health sector will also benefit from the GST reforms. The overall reduction in taxes on medicines will lower their prices and ease the financial burden on patients. This reform will also encourage the local production of complex generic drugs. This will strengthen India's pharmaceutical base and reduce dependence on imports.
Relief for Patients with Rare and Chronic Diseases
The IPA reported that patients with rare and chronic diseases will benefit most from this reform. An estimated 72.6 million people in India suffer from rare diseases. These conditions often impose a heavy financial burden on patients due to expensive treatment procedures.
Asthma and COPD Patients
This also brings relief to patients with asthma and Chronic Obstructive Pulmonary Disease (COPD). For instance, the daily inhaler for a COPD patient previously cost 3,135 rupees per month, totaling 37,620 rupees annually. After the new GST rates, the tax applied will result in an annual saving of approximately 2,351 rupees.
Significant Relief for Obesity Patients
The GST reform will have the most significant impact on obesity treatment. Previously, the annual cost of medicines and tests for obesity patients was approximately 9 lakh rupees. Due to the new GST rates, treatment costs will decrease by up to about 2 lakh rupees.
