The GST Council, in its meeting on September 3, 2025, has completely removed GST from 33 life-saving and expensive medicines. Previously, these were taxed at 12%. This change will come into effect from September 22, the first day of Navratri. Now, medicines for cancer and serious illnesses will become cheaper, providing financial relief to patients.
No GST on These Medicines: In a significant relief to the healthcare sector, GST has been removed from 33 life-saving medicines during the GST Council meeting held in New Delhi on September 3, 2025. Chaired by Union Finance Minister Nirmala Sitharaman, the meeting decided to reduce the 12% tax on medicines used for cancer, blood disorders, and other serious illnesses to 0%. This rule will be implemented from September 22, which will lower the cost of treatment and alleviate the financial burden on patients and their families.
Relief for Life-Saving Medicines
Several expensive medicines used in the treatment of cancer, blood disorders, and rare diseases will now be tax-free. Previously, a 12% GST was applicable to them, but they have now been moved to the zero-tax category. This will directly benefit patients and their families as the prices of expensive medicines will now decrease.
When Will the New Rules Come into Effect
The government has clarified that this new system will be implemented across the country from September 22, 2025. This means patients will receive this relief starting with the beginning of Navratri. The price increase in medicines that was previously due to taxes will now be completely eliminated.
Which Medicines Will Be GST Free
The list of these 33 medicines includes many drugs considered essential for treating serious illnesses. These medicines are particularly crucial for patients suffering from cancer and blood-related diseases. Now, no GST will be levied on their purchase.
Full List of GST Free Medicines
- Onasemnogene abeparvovec
- Asciminib
- Mepolizumab
- Pegylated Liposomal Irinotecan
- Daratumumab
- Daratumumab (subcutaneous)
- Teclistamab
- Amivantamab
- Alectinib
- Risdiplam
- Obinutuzumab
- Polatuzumab vedotin
- Entrectinib
- Atezolizumab
- Spesolimab
- Velaglucerase Alpha
- Agalsidase Alfa
- Rurioctocog Alpha Pegol
- Idursulphatase
- Alglucosidase Alfa
- Laronidase
- Olipudase Alfa
- Tepotinib
- Avelumab
- Emicizumab
- Belumosudil
- Miglustat
- Velmanase Alfa
- Alirocumab
- Evolocumab
- Cystamine Bitartrate
- C1-Inhibitor (injection)
- Inclisiran
Major Change in Tax Slabs Too
The GST Council has not only made medicines tax-free but also simplified the tax slabs. Now, there will be only two tax slabs: 5 percent and 18 percent. Previously, there were four types of slabs, making tax calculation difficult for both traders and consumers. The government states that this change will simplify the system and provide relief to businesses. Additionally, taxes on many everyday items such as soap, bicycles, televisions, and insurance services have also been reduced. However, taxes on tobacco, gutkha, and cigarettes have been increased to 40 percent.
What Will Be the Impact
Revenue Secretary Arvind Srivastava stated that the changes in tax slabs and the elimination of GST on medicines will have an impact of approximately ₹48,000 crore. However, the government believes this will not pose a significant burden on the financial situation. Prime Minister Narendra Modi had spoken about simplifying the tax system on the occasion of Independence Day, and this is a significant step in that direction.
Direct Benefit to the Common Public
The removal of taxes from expensive and life-saving medicines will most benefit families who bore the heavy expenses of treatment. The cost of treatment for patients battling cancer, rare diseases, and blood disorders will now be reduced. This decision is considered historic in the healthcare sector.
These new rules, starting from September 22, will not only provide financial relief to the common people but also make access to healthcare services easier.
