The Union government on Wednesday (September 3) announced a GST rate cut on various products. The decision taken by the GST Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday, rationalised the indirect tax structure, cutting the current four slabs down to two — scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.

One of the biggest announcements was removing tax on 33 life-saving drugs and medicines, which was 12 per cent earlier. 

As per the revision, life-saving drugs, health-related products, and some medical devices will see a rate cut from 12 per cent/18 per cent to 5 per cent or nil.

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“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 added.

“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,” she said.

List of 33 medicines

Agalsidase Beta 
Imiglucerase )
Eptacog alfa activated recombinant coagulation factor VIIa 
Onasemnogene abeparvovec 
Asciminib 
Mepolizumab 
Pegylated Liposomal Irinotecan 
Daratumumab 
Daratumumab subcutaneous 
Teclistamab 
Amivantamab 
Alectinib 
Risdiplam 
Obinutuzumab 
Polatuzumab vedotin 
Entrectinib 
Atezolizumab 
Spesolimab 
Velaglucerase Alpha 
Agalsidase Alfa
Rurioctocog Alpha Pegol
Idursulphatase 
Alglucosidase Alfa 
Laronidase, Olipudase Alfa 
Tepotinib, Avelumab 
Emicizumab 
Belumosudil 
Miglustat 
Velmanase Alfa 
Alirocumab 
Evolocumab 
Cystamine Bitartrate 
CI-Inhibitor injection and Inclisiran

The changes in GST rates on services will be implemented from September 22.

Insurance, medical oxygen, and diagnostic kits

The GST revision will also slash rates for health insurance, medical oxygen, and diagnostic kits.

GST on individual health and life insurance premiums has been reduced to nil (which currently stands at 18 per cent).
 

Also Read: GST on health and life insurance premiums cut to zero; will individual policyholders pay less premium now? Understand with example

The GST rates have been slashed from 18 per cent to 5 per cent on various medical apparatus and devices used for medical, surgical, dental or veterinary usage, or for physical or chemical analysis

The GST rates have been reduced from 12 per cent to 5 per cent on various medical equipment and supplies devices such as wadding gauze, bandages, diagnostic kits and reagents, blood glucose monitoring system (Glucometer) medical devices, etc.