In a truly monumental decision, the Union government has delivered significant relief to countless citizens. The Goods and Services Tax, or GST, on a staggering 33 cancer drugs and various crucial rare disease medicines has been completely eliminated. Yes, you read that right: the rate has plummeted from 12 percent all the way down to zero percent.
This isn’t just a minor tweak; it’s a game changer for many families grappling with the immense financial burden of critical illnesses. Imagine the direct impact this tax cut will have on affordability and accessibility.
The GST Council, operating under the watchful eye of Finance Minister Nirmala Sitharaman, met recently to enact these pivotal changes. Their work didn’t stop at cancer drugs. They’ve also been busy rationalizing the entire indirect tax structure, aiming for greater simplicity and fairness.
Specifically, the existing four GST slabs are being streamlined into just two. The 12 percent and 28 percent categories are being scrapped, while the 5 percent and 18 percent rates will remain in effect. This move alone signals a significant shift in India’s tax landscape.
Finance Minister Sitharaman didn’t mince words, stating clearly, “GST on 33 life-saving drugs and medicines has come down from 12 per cent to zero.” This direct quote underscores the government’s commitment to easing the financial strain on the populace.
But the good news doesn’t end there. The Union government has also applied its axe to GST rates for other essential life-saving drugs and health-related products. In a broader revision, many of these items, along with certain medical devices, will now see their rates cut from either 12 percent or 18 percent down to a mere 5 percent, or even nil.
“From 5 to 0 and 3 life-saving drugs and medicines used for the treatment of cancer, rare diseases and other severe chronic diseases,” the Finance Minister further elaborated. This highlights a targeted approach to key areas of medical need.
She continued, “There are several drugs and medicines coming down to 5 per cent from 12 per cent. Similarly, spectacles and goggles for correcting vision are also coming down to 5 per cent from 28 per cent.” This is fantastic news for millions of people who rely on vision correction, making these everyday necessities much more affordable.
These adjustments aren’t just for goods; changes in GST rates on services are also on the horizon. These new rates are set to be implemented starting September 22. This brings a clear timeline to these beneficial reforms.
Beyond medicines and spectacles, the GST revision will also bring down rates for crucial health services and supplies. Think about health insurance, for instance. Premiums for individual health and life insurance have been reduced to nil, a dramatic drop from the previous 18 percent.
This is a huge win for the common person! Finance Minister Sitharaman believes this will make insurance significantly more affordable, thereby helping to expand coverage across the diverse landscape of the country. Increased insurance penetration means greater financial security and access to healthcare for more people. The **cancer** drug decision is truly impactful.
Furthermore, various medical apparatus and devices, whether used for medical, surgical, dental, veterinary purposes, or for physical or chemical analysis, have seen their GST rates slashed from 18 percent down to 5 percent. This covers a broad spectrum of essential medical tools.
And for many common medical supplies? Things like wadding gauze, bandages, diagnostic kits and reagents, and even vital medical devices such as blood glucose monitoring systems (glucometers) and other similar medical equipment will now be taxed at 5 percent, down from 12 percent. This makes everyday medical necessities more accessible.
While consumers can rejoice in these reductions, goods deemed harmful to health aren’t getting off easy. Products like pan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi will steadfastly remain under existing high GST rates and compensation cess. There will be no relief here until all outstanding cess-linked loans are fully cleared. This differential treatment highlights a clear policy stance.
And finally, all goods that contain added sugar or other sweetening matter, or are artificially flavored, including aerated waters, are seeing their GST rates jump from 28 percent to a hefty 40 percent. This move is likely aimed at discouraging consumption of such items, balancing the health-focused approach seen with the **cancer** drug cuts.
The overall impact of these changes is significant. From the dramatic reduction on **cancer** drugs to the increased affordability of spectacles and health insurance, the government has shown a clear intent to support public health and well-being. These reforms will certainly be a welcome change for many households across India, reinforcing the focus on citizen welfare.