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GST Rate Cut 2025
GST Rate Cut 2025 : In a landmark decision that brings huge relief to millions of Indians, the Modi government has announced a complete GST waiver on health and life insurance premiums and zero GST on 33 life-saving drugs. This decision, taken at the 56th GST Council Meeting on September 22, 2025, is being seen as a major step towards making healthcare and financial protection more affordable for common citizens.
What Did the Finance Minister Announce?
Union Finance Minister Nirmala Sitharaman shared the update, stating:
- GST on all individual health and life insurance policies has been reduced from 12% to 0%.
- GST on 33 essential drugs, used for treating cancer, rare genetic disorders, and chronic diseases, has been completely eliminated.
- For certain medicines, GST rates have been rationalized, bringing them down from 12% to 5%.
- On three critical life-saving drugs specifically for cancer and rare diseases, GST has been reduced from 5% to 0%.
This step is expected to not only make treatments more affordable but also provide significant financial relief to families who rely on health insurance for medical security.
Why Is This Decision Important?
The cost of healthcare has been steadily rising, and expensive medicines often become a burden for patients battling critical illnesses. By removing GST on insurance and essential medicines, the government aims to:
- Reduce the out-of-pocket expenses for patients.
- Encourage more people to buy health and life insurance policies.
- Improve access to treatment for rare and chronic diseases.
- Provide financial security to families already struggling with medical costs.
Full List of 33 Life-Saving Drugs With Zero GST
The following medicines will now be available without GST, making them more affordable:
- Onasemnogene abeparvovec
- Eskiminib
- Mepolizumab
- Pegylated liposomal irinotecan
- Daratumumab
- Daratumumab subcutaneous
- Teclistamab
- Amivantamab
- Alectinib
- Risdiplam
- Obinutuzumab
- Polatuzumab vedotin
- Entrectinib
- Atezolizumab
- Spesolimab
- Velaglucerase alfa
- Agalsidase alfa
- Rurioctocog alfa pegol
- Idursulphatase
- Alglucosidase alfa
- Laronidase
- Olipudase alfa
- Tepotinib
- Avelumab
- Emicizumab
- Belumosudil
- Miglustat
- Velamanase alfa
- Alirocumab
- Evolocumab
- Cysteamine bitartrate
- CI-inhibitors Injection
- Inclisiran
These medicines are crucial in the treatment of cancer, hemophilia, rare metabolic disorders, and chronic conditions.
Benefits for Citizens and the Healthcare Sector
This GST exemption is a win-win for both patients and the healthcare system:
- Affordable Insurance: With zero GST, policyholders will save directly on their annual premiums.
- Cheaper Treatment: Patients will no longer pay tax on life-saving drugs, reducing treatment costs significantly.
- Better Access: Lower prices ensure more patients can afford high-quality medicines.
- Boost to Insurance Sector: More people may now purchase insurance policies, strengthening India’s financial safety net.
Conclusion
The GST rate cut on health insurance and life-saving drugs marks a historic reform in India’s healthcare policy. By reducing the financial burden on citizens, the Modi government has taken a bold step towards ensuring “Affordable Healthcare for All”. This move is expected to bring long-term benefits, making essential medicines accessible and health insurance truly affordable.
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