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CDSCO Circular for Online Pharmacies on GST Cuts for Medicines and Devices

CDSCO_Circular_for_Online_Pharmacies_on_GST_Cuts_for_Medicines_and_Devices_Corpseed.webp
Last updated : 2025-10-27

India has taken a major step toward affordable healthcare. The CDSCO (Central Drugs Standard Control Organisation) under the Ministry of Health and Family Welfare has made a revision in Goods and Services Tax (GST) rates for medicines, pharmaceuticals, and medical devices. The new GST structure came into effect on 22 September, which aims to lower the price of essential medicines and equipment.

This reform, called the Next-Gen GST Reform, reduces GST rates from 12% to 5% on many healthcare products and even brings certain life-saving drugs to a 0% tax rate. To spread awareness, the CDSCO has directed Internet Pharmacy Associations to run a 100-day nationwide campaign highlighting these benefits.

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Highlights of the GST Reform

The current changes in the GST reflect the government's vision of "Health for All, Savings for All", ensuring that reduced tax benefits reach every patient.

S.No. Category Old GST Rate New GST Rate Impact / Benefit
1 Essential medicines 12% 5%/Nil Makes vital drugs cheaper
2 Cancer medicines 12% Nil Life-saving cancer drugs become tax-free
3 Medical devices & equipment 12% 5% Reduces treatment cost
4 Medical-grade oxygen & diagnostic kits 12% 5% Affordable healthcare testing
5 Spectacles, lenses & contact lenses 12% 5% Cheaper vision care
6 Bio-medical waste disposal services 12% 5% Lower cost of safe waste management
7 Pharmaceutical job-work 12% 5% Reduces cost in manufacturing
8 Dry fruits, diabetic foods & beverages with milk 12% 5% Health-oriented foods made affordable

Instructions to Internet Pharmacies

The CDSCO has issued specific directions to Internet Pharmacy Associations to ensure wide-scale awareness and transparency. Each association must:

  • Display banners on websites about the GST rate reduction on medicines and devices.
  • Publish advertisements in print and digital media explaining the new GST rates.
  • Run social media campaigns using official hashtags and influencer collaborations.
  • Print the GST benefit message on every invoice issued.
  • Encourage delivery partners to share leaflets or stickers with each delivery, highlighting GST savings.
  • Document and submit campaign materials, banners, posts, screenshots, and photos to CDSCO Headquarters for record-keeping.
  • Continue all promotional activities for a minimum of 100 days to ensure nationwide reach.

Also Read: Next-Gen GST Reforms: A Key Initiative for Pharma, MedTech and Cosmetics Industry Associations

How GST Reform Will Impact Internet Pharmacies

The new GST reform will help internet pharmacies in many ways. It will make their work easier, build public trust, and bring more people to online healthcare. This change is not only about taxes, it is about making medicines and medical devices more affordable for everyone.

1. Price Becomes More Competitive

When tax rates go down, the price of medicines and medical devices also drops. Online pharmacies can now sell products at a lower cost in the market. This makes them more affordable and helps them compete better with local medical stores. People can save more money when buying their daily medicines online.

2. Public Trust Grows Stronger

Clear information builds trust. When customers see lower GST rates printed on their bills, they know the benefit is real. Honest & correct billing and transparent pricing make people believe more in online pharmacies. This trust encourages them to keep ordering from these platforms.

3. More People Choose Online Healthcare

Affordable prices attract more people to use digital healthcare platforms. When essential medicines and diagnostic kits become cheaper, families prefer to buy them online. This helps India's e-pharmacy and telemedicine services grow faster. It also makes healthcare easy to access, even for people living far from cities.

4. Support for Chronic Illness Patients

People with long-term diseases such as diabetes, high blood pressure, or cancer often spend a lot on medicines. The GST cut brings real relief to such patients. With lower costs, they can continue their treatment without extra financial stress. Internet pharmacies play an important role in making sure these savings reach homes across the country.

5. Better Coordination with Regulators

The campaign led by CDSCO has created a new level of teamwork between the government and online pharmacies. This partnership helps in building a safer, more transparent, and more trusted digital healthcare system. It also encourages innovation and helps pharmacies follow the right rules easily.

6. Encouragement of Ethical Online Practice

The campaign highlights responsible business conduct. Internet pharmacies will promote awareness without misleading advertisements and by following all CDSCO-approved communication guidelines.

100-Day Awareness Campaign

The CDSCO circular outlines a 100-day communication campaign across India. The campaign's objective is to educate the public and industry stakeholders about the GST reduction benefits. Key focus areas of the campaign are:

  • Print and Digital Advertising: Articles, digital banners, and posters showing "GST reduced from 12% to 5%/Nil on medicines and devices."
  • Social Media Outreach: Daily posts and videos highlighting the benefits of using hashtags like #NextGenGST, #AffordableHealthcare, and #HealthForAll.
  • Influencer Partnerships: Collaboration with health professionals and content creators to discuss the impact of the GST reform on patient expenses.
  • Public Display: Posters on delivery vehicles, websites, and pharmacy apps showing proper GST comparisons.
  • Reporting to CDSCO: Internet pharmacies to send campaign reports, including photos, post links, and invoice samples, to CDSCO-HQ, New Delhi, every fortnight.

Why the Reform Matters?

The GST reform is not just a tax update; it is a social welfare measure. By cutting taxes on essential and life-saving items, the government aims to:

  • Lower treatment costs for chronic and critical illnesses.
  • Support patients who actually depend on long-term medication.
  • Encourage preventive healthcare by making diagnostic tools affordable.
  • Reduce financial stress on households managing multiple health expenses.
  • Boost healthcare accessibility through digital and offline channels alike.

This initiative aligns with the broader mission of Universal Health Coverage under India's National Health Policy.

Conclusion

The GST Reform is a turning point in India's healthcare system. With tax rates reduced on essential medicines, medical devices, cancer drugs, and other things, healthcare becomes more affordable for millions. Internet pharmacies now hold a major responsibility. Acting under the guidance of the Central Drugs Standard Control Organisation (CDSCO), they are set to lead a 100-day awareness campaign to ensure that every patient understands this benefit.

By spreading accurate information, showing transparent pricing, and engaging on social media, Internet Pharmacies will help make the vision of "Affordable Healthcare and Wellness for All" a reality. The reform demonstrates how tax policy and digital health can work together for the public good, ensuring that savings reach those who need them most.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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Mahek Sancheti, BAJMC graduate with a deep passion for writing. As a content writer, video content creator, creative content creator, and scriptwriter, I bring stories to life through words and visuals. I honed my skills by working with a promi...

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