The Government of India has introduced new GST rates to make healthcare sector products more affordable for people. The Ministry of Health and Family Welfare has issued directions to all Pharma, MedTech and Cosmetics Industry Associations in New Delhi to raise public awareness about the new Goods and Services Tax (GST) structure.

These reforms focus on reducing GST rates on medicines, medical devices, and cosmetics, with the new rates that came into effect from 22 September 2025. The change aims to make healthcare more accessible by lowering the cost of essential items like medicines and life-saving equipment.

The Central Drugs Standard Control Organisation (CDSCO) has asked associations and stakeholders to promote awareness about this GST rationalisation through media campaigns and outreach programs. The campaign will run for 100 days, ensuring that the public understands the benefits of this initiative.

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Revised GST Rates for Medicines, Medical Devices and Healthcare Products

Under the Next-Gen GST Reforms, the Government of India has reduced the GST rate from 12% to 5% on key healthcare products, and in some cases, completely removed it (NIL rate). The revised GST structure includes:

• Essential medicines: Reduced from 12% to 5% or NIL.
• Medical devices and equipment: Reduced from 12% to 5%.
• Medical-grade oxygen and diagnostic kits: Reduced from 12% to 5%.
• Spectacles, spectacle lenses, and contact lenses: Reduced from 12% to 5%.

The new GST rates aim to support patients with chronic illnesses such as diabetes, hypertension, and cancer. The reduced tax burden helps make long-term treatments more affordable and encourages better access to quality healthcare. These rate changes are part of the government’s broader effort to improve public health while reducing the financial burden on citizens.

Cancer Drugs Now Tax-Free

A major highlight of the Next-Gen GST Reforms is the complete removal of GST on selected life-saving cancer medicines. Under the new structure, these essential drugs are tax-free, providing much-needed relief to patients undergoing treatment for serious diseases.

The Ministry of Health and Family Welfare announced this change to make cancer treatment more affordable and to reduce the cost of long-term care. The exemption ensures that patients and hospitals can access critical medicines without the added tax cost.

This reform highlights the government’s focus on making healthcare inclusive and supportive of those suffering from life-threatening conditions. It aligns with the national goal of providing affordable and accessible treatment for all.

Impact on Healthcare and Wellness Sectors

The Next-Gen GST Reforms also cover wellness and preventive care sectors. The reduction in GST extends beyond medicines and includes various health-related services and products. Key changes include:

• Gyms and fitness centres: GST rationalized to promote fitness and wellness.
• Diabetic foods and dry fruits: Reduced GST to encourage healthy lifestyles.
• Prepared or preserved fish, fruit pulp-based drinks, and beverages containing milk: Covered under reduced GST for better consumer affordability.
• Cosmetic and personal care products: Adjusted GST to promote local manufacturing and balanced pricing.

These rationalized rates aim to make healthcare, nutrition, and wellness accessible to every segment of society. The inclusion of cosmetics under the reform indicates the government’s focus on holistic well-being, covering both medical and personal care needs.

Regulatory Importance and Role of Pharma, MedTech and Cosmetics Industry Associations

The Pharma, MedTech and Cosmetics Industry Associations have been assigned a vital regulatory role in ensuring public awareness about these GST reforms. The Ministry of Health and Family Welfare and CDSCO have instructed all associations to take active steps in informing stakeholders and the general public about the revised tax rates and their benefits. The key actions proposed include:

Encouraging members to publish advertisements in print and electronic media.Running a sustained social media campaign using influencers and verified posts.

• Participating in panel discussions to explain the reforms and their benefits.
• Displaying banners, posters, and hoardings at offices, manufacturing sites, and public areas.
• Continuing the awareness campaign for 100 days to reach the maximum audience.
• Collecting photos and reports of activities and submitting them to the CDSCO Headquarters for official reporting.

This collective communication strategy will ensure that the benefits of the GST rationalisation reach all stakeholders, including manufacturers, traders, distributors, and consumers. The coordination between government bodies and industry associations highlights the regulatory strength of India’s health system.

Conclusion

The Next-Gen GST Reforms represent a major policy advancement toward affordable healthcare, wellness, and economic relief. By cutting GST rates from 12% to 5%, and in some cases removing them completely, the government has significantly reduced costs for patients and healthcare providers.

This reform also encourages local production of medical devices, pharmaceuticals, and cosmetics under the Make in India initiative. The collaboration between the Ministry of Health and Family Welfare, CDSCO, and Pharma, MedTech and Cosmetics Industry Associations ensures a transparent and coordinated approach to public awareness.

The 100-day awareness campaign is a crucial step in ensuring that every citizen understands how the GST reform benefits both consumers and industries. It strengthens India’s commitment to building a healthier nation where quality medical products, essential drugs, and wellness goods are affordable for all.