The Impact of GST 2.0 on Healthcare marks a turning point in India’s tax reforms, with a people-first approach that prioritises affordability and access over anything.
This update was clarified in the latest 56th GST council meeting, where Finance Minister Nirmala Sitharaman broadly announced the primary motive behind this update: making healthcare more affordable, accessible, and aligned with the vision of a citizen-centric GST.
These GST amendments reshape insurance, medicines, medical devices, and vision care to enhance both public health and economic ease and reduce financial stress for households.
Read on to learn what all the impacts of GST 2.0 on healthcare are that might make a change pivotal in the history of India.
GST Reforms Impact on Insurance Services
One of the most significant GST 2.0 changes is the exemption of life and health insurance services.
By removing the tax burden, the government signals its intent to make insurance more affordable and expand coverage across the population.
Here is the list of changes in rates under the new GST:
| Goods/Services | Old GST Slab | New GST Slab |
|---|---|---|
| Life insurance policies & reinsurance | 18% (with ITC) | Exempted |
| Health insurance policies & reinsurance | 18% (with ITC) | Exempted |
This move benefits families, older citizens, and first-time buyers, ensuring wider access to essential protection and aligning with the broader vision of a healthier, more secure India.
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GST 2.0 Rates on Lifesaving Drugs
The latest GST update emphasises healthcare equity by exempting or easing taxes on lifesaving medicines for cancer, rare diseases, and chronic illnesses. The aim is to reduce barriers for patients who depend on high-cost therapies.
Take a look at the complete list of items that will receive a rate cut following GST 2.0:
| Drugs/Medicines (with brief explanation & examples) | Old GST | New GST |
|---|---|---|
| Rare enzyme/genetic disorder drugs
(e.g., Agalsidase Beta, Imiglucerase, Eptacog alfa) | 5% | NIL |
| Advanced cancer & rare disease therapies
(e.g., Onasemnogene abeparvovec for SMA, Asciminib, Daratumumab, Alectinib, Risdiplam, Teclistamab, Amivantamab) | 12% | NIL |
| Targeted oncology & immunotherapy biologics
(e.g., Obinutuzumab, Polatuzumab Vedotin, Entrectinib, Atezolizumab, Spesolimab) | 12% | NIL |
| Enzyme replacement & genetic therapies
(e.g., Velaglucerase Alpha, Agalsidase Alfa, Laronidase, Olipudase Alfa, Idursulphatase, Alglucosidase Alfa, Rurioctocog Alpha Pegol) | 12% | NIL |
| Other rare lifesaving therapies
(e.g., Tepotinib, Avelumab, Emicizumab, Belumosudil, Miglustat, Alirocumab, Evolocumab, Inclisiran) | 12% | NIL |
Patients battling critical conditions will find treatments more within reach, underlining how the latest changes in GST place human welfare at the heart of economic reform.
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Impact of GST 2.0 on General Medicines
Beyond rare disease therapies, the new changes in GST 2.0 on healthcare bring relief for a wide spectrum of medicines used in everyday treatments. By simplifying tax slabs, India moves closer to creating a healthcare system that is affordable for all.
Here is an overview of GST 2.0 rates on general medicines:
| Goods/Services | Old GST Slab | New GST Slab |
|---|---|---|
| Fluticasone Furoate + Umeclidinium + Vilanterol, Brentuximab, Ocrelizumab, Pertuzumab, Faricimab | 12% | 5% |
| Glands & extracts, heparin, therapeutic substances (HSN 3001) | 12% | 5% |
| Animal blood, antisera, toxins, cultures (HSN 3002) | 12% | 5% |
| Ayurvedic, Unani, Siddha, Homoeopathic, Biochemic medicines | 12% | 5% |
| Pharmaceutical goods (sutures, adhesives, catgut, HSN 3006) | 12% | 5% |
| Personal use medicines (HSN 9804) | 12% | 5% |
This strengthens the affordability of routine care, helping households reduce medical expenses and ensuring that no one is left behind.
Also Read: New GST Reforms to Bring Major Relief
GST 2.0 on Medical Devices & Instruments
The GST Council’s latest meeting also addressed the costs of medical technology. This includes covering devices, instruments, and apparatus across surgical, diagnostic, and therapeutic applications.
By rationalising rates, the reforms lower the burden on hospitals, clinics, and labs.
Here is a comprehensive table with all the GST rates on Medical devices and instruments:
| Goods/Services | Old GST Slab | New GST Slab |
|---|---|---|
| Wadding, gauze, bandages (HSN 3005) | 12% | 5% |
| Diagnostic kits & reagents (HSN 3822) | 12% | 5% |
| Surgical/medical gloves (HSN 4015) | 12% | 5% |
| Glucometer & test strips | 12% | 5% |
| Heart occlusion devices | 12% | 5% |
| Medical instruments (HSN 9018) | 12% | 5% |
| Therapy/respiration apparatus (HSN 9019) | 12% | 5% |
| Breathing appliances & gas masks (HSN 9020) | 12% | 5% |
| X-ray/radiotherapy apparatus (HSN 9022) | 12% | 5% |
| Thermometers (HSN 9025) | 18% | 5% |
| Analytical instruments for medical use (HSN 9027) | 18% | 5% |
Doctors and healthcare providers can now focus more on patient care than on tax compliance, paving the way for modernised and accessible healthcare delivery.
GST Rate Changes on Medical Consumables/Gases
The medical consumables include a variety of items from gloves and bandages to oxygen and other essential medical gases; the council’s latest update regarding GST 2.0 on healthcare highlights the government’s recognition of daily hospital needs.
These are core to both emergency and routine care.
Here is a list of GST rate changes on medical consumables:
| Goods/Services | Old GST Slab | New GST Slab |
|---|---|---|
| Anaesthetics, Potassium Iodate, Steam, Iodine | 12% | 5% |
| Medical grade oxygen (HSN 2804) | 12% | 5% |
| Medicinal hydrogen peroxide (HSN 2847) | 12% | 5% |
| X-ray photographic plates/films (HSN 3701) | 12% | 5% |
By making consumables more affordable, the reforms ease operational costs for hospitals and reduce out-of-pocket spending for patients.
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GST Reforms on Vision Care Product Rates
Eye care is one of the most overlooked parts of health care by most. However, this has not been the case under the latest GST reforms on healthcare.
Products such as spectacles, lenses, and frames, once burdened by higher tax rates, will now benefit from streamlined taxation.
Here is a detailed table on the new GST rates for vision care products:
| Goods/Services | Old GST Slab | New GST Slab |
|---|---|---|
| Spectacles & goggles (HSN 9004) | 12% | 5% |
| Contact lenses (HSN 9001) | 12% | 5% |
| Spectacle lenses (HSN 9001) | 12% | 5% |
| Frames & mountings (HSN 9003) | 12% | 5% |
| Corrective glasses & flint buttons (HSN 7015) | 12% | 5% |
This will make vision correction products more accessible, directly improving the quality of life for millions who depend on them daily.
Read more: Impact of GST 2.0 on Daily Essentials
Conclusion: The Healthcare Accessibility
The latest GST news doesn’t stop at products and services; it reflects a philosophy of inclusivity.
By simplifying structures and rationalising taxes, GST 2.0 supports both patients and the healthcare ecosystem: doctors, insurers, and manufacturers alike. The Impact of GST 2.0 on healthcare goes beyond tax policy, as it is a push toward better health outcomes, economic inclusivity, and long-term resilience.
This underscores a clear message: healthcare is not just another sector but a priority for the nation’s growth and welfare.
If you are an MSME or a manufacturer, it would be a wise idea to know your rates beforehand, using a GST calculator.
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