Introduction
The 56th GST Council has brought clear gains for India’s healthcare and pharmaceutical sector.
By cutting GST rates, it helps reduce costs and makes medical products and services easier to afford.
Above all, the reforms focus on:
- Removing GST on many rare-disease therapies.
- Reducing tax on diagnostics, medical devices, and surgical tools.
- Cutting rates on hospital, diagnostic, and ambulance services while keeping ITC available.
A) Goods – Rare Therapies (5% → Nil)
| HSN/Chapter | Description | From | To | ITC |
|---|---|---|---|---|
| 30 | Agalsidase Beta | 5% | Nil | ITC available |
| 30 | Imiglucerase | 5% | Nil | ITC available |
| 30 | Eptacog alfa activated recombinant coagulation factor VIIa | 5% | Nil | ITC available |
B) Goods – Rare Therapies / Medicines (12% → Nil)
Full List of Exempted Medicines
The table below shows all medicines that now carry no GST.
As a result, people who depend on these drugs will see lower bills.
| HSN/Chapter | Description | From | To | ITC |
|---|---|---|---|---|
| 30 | Onasemnogene abeparvovec | 12% | Nil | ITC available |
| 30 | Asciminib | 12% | Nil | ITC available |
| 30 | Mepolizumab | 12% | Nil | ITC available |
| 30 | Pegylated Liposomal Irinotecan | 12% | Nil | ITC available |
| 30 | Daratumumab | 12% | Nil | ITC available |
| 30 | Daratumumab subcutaneous | 12% | Nil | ITC available |
| 30 | Teclistamab | 12% | Nil | ITC available |
| 30 | Amivantamab | 12% | Nil | ITC available |
| 30 | Alectinib | 12% | Nil | ITC available |
| 30 | Risdiplam | 12% | Nil | ITC available |
| 30 | Obinutuzumab | 12% | Nil | ITC available |
| 30 | Polatuzumab vedotin | 12% | Nil | ITC available |
| 30 | Entrectinib | 12% | Nil | ITC available |
| 30 | Atezolizumab | 12% | Nil | ITC available |
| 30 | Spesolimab | 12% | Nil | ITC available |
| 30 | Velaglucerase Alpha | 12% | Nil | ITC available |
| 30 | Agalsidase Alfa | 12% | Nil | ITC available |
| 30 | Rurioctocog Alpha Pegol | 12% | Nil | ITC available |
| 30 | Idursulphatase | 12% | Nil | ITC available |
| 30 | Alglucosidase Alfa | 12% | Nil | ITC available |
| 30 | Laronidase | 12% | Nil | ITC available |
| 30 | Olipudase Alfa | 12% | Nil | ITC available |
| 30 | Tepotinib | 12% | Nil | ITC available |
| 30 | Avelumab | 12% | Nil | ITC available |
| 30 | Emicizumab | 12% | Nil | ITC available |
| 30 | Belumosudil | 12% | Nil | ITC available |
| 30 | Miglustat | 12% | Nil | ITC available |
| 30 | Velmanase Alfa | 12% | Nil | ITC available |
| 30 | Alirocumab | 12% | Nil | ITC available |
| 30 | Evolocumab | 12% | Nil | ITC available |
| 30 | Cystamine Bitartrate | 12% | Nil | ITC available |
| 30 | CI-Inhibitor injection | 12% | Nil | ITC available |
| 30 | Inclisiran | 12% | Nil | ITC available |
C) Goods – Medicines, Diagnostics & Surgical Instruments (12% → 5%)
How This Helps
Lower GST means hospitals and labs will spend less on supplies, and patients will benefit from lower prices.
| HSN/Chapter | Description | From | To | ITC |
|---|---|---|---|---|
| 28 | Anaesthetics | 12% | 5% | ITC available |
| 28 | Potassium Iodate | 12% | 5% | ITC available |
| 28 | Steam | 12% | 5% | ITC available |
| 2801 20 | Iodine | 12% | 5% | ITC available |
| 2804 40 10 | Medical grade oxygen | 12% | 5% | ITC available |
| 2847 | Medicinal grade hydrogen peroxide | 12% | 5% | ITC available |
| 30 | All Drugs and medicines including FF/UMEC/VI, Brentuximab Vedotin, Ocrelizumab, Pertuzumab, Pertuzumab+Trastuzumab, Faricimab | 12% | 5% | ITC available |
| 3001 | Glands and other organs for organo-therapeutic uses, dried; extracts for organo-therapeutic use; heparin and its salts; other human or animal substances for therapeutic or prophylactic use | 12% | 5% | ITC available |
| 3002 | Animal blood for therapeutic/prophylactic/diagnostic use; antisera and other blood fractions; modified immunological products; toxins; cultures of microorganisms | 12% | 5% | ITC available |
| 3003 | Mixed medicaments (excluding 30.02, 30.05, 30.06) | 12% | 5% | ITC available |
| 3004 | Medicaments in measured doses or retail packaging including Ayurvedic, Unani, Siddha, Homeopathic or Biochemic systems | 12% | 5% | ITC available |
| 3005 | Wadding, gauze, bandages, plasters, dressings, impregnated or coated | 12% | 5% | ITC available |
| 3006 | Pharmaceutical goods: sterile surgical catgut, suture materials, tissue adhesives, laminaria, sterile haemostatics, sterile adhesion barriers, waste pharmaceuticals (excluding contraceptives and ostomy appliances) | 12% | 5% | ITC available |
| 3822 | All diagnostic kits and reagents | 12% | 5% | ITC available |
| 4015 | Surgical rubber gloves or medical examination gloves | 12% | 5% | ITC available |
| 90 / any chapter | Blood glucose monitoring system (Glucometer) and test strips | 12% | 5% | ITC available |
| 90 / any chapter | Patent Ductus Arteriousus / Atrial Septal Defect occlusion device | 12% | 5% | ITC available |
| 9004 | Spectacles and goggles for correcting vision | 12% | 5% | ITC available |
| 9018 | Instruments and appliances used in medical, surgical, dental or veterinary sciences | 12% | 5% | ITC available |
| 9019 | Mechano-therapy, massage apparatus, oxygen therapy, artificial respiration, etc. | 12% | 5% | ITC available |
| 9020 | Other breathing appliances & gas masks | 12% | 5% | ITC available |
| 9022 | X-ray, alpha/beta/gamma apparatus for medical/surgical/dental/veterinary use | 12% | 5% | ITC available |
| 9804 | Other drugs & medicines intended for personal use | 12% | 5% | ITC available |
D) Goods – Instruments for Analysis (18% → 5%)
| HSN/Chapter | Description | From | To | ITC |
|---|---|---|---|---|
| 9025 | Thermometers for medical, surgical, dental, or veterinary usage | 18% | 5% | ITC available |
| 9027 | Instruments & apparatus for physical or chemical analysis (medical, surgical, dental, veterinary) | 18% | 5% | ITC available |
E) Services – Hospitals, Diagnostics & Ambulance
GST on Services
The Council also reduced GST on key healthcare services. Consequently, patients and service providers will see cost benefits.
| HSN/Chapter | Description | From | To | ITC |
|---|---|---|---|---|
| 9985 | Hospital services (inpatient, outpatient, emergency, surgical) | 18% | 12% | With ITC |
| 9985 | Diagnostic services (MRI, CT, Ultrasound, X-Ray, Lab tests) | 18% | 12% | With ITC |
| 9985 | Telemedicine and consultation services | 18% | 12% | With ITC |
| 9985 | Ambulance services (inclusive of paramedical staff) | 12% | 5% | With ITC |
Impact Analysis
Benefits for Stakeholders
- Hospitals & Clinics: Lower GST on diagnostics and treatment helps control expenses.
- Pharma Firms: Competitive prices make essential drugs more reachable.
- Medical Devices: Lower tax and steady ITC improve cash flow.
- Patients: Easier access to therapies and tests at affordable prices.
Steps for Smooth Adoption
In addition, businesses should:
- Update ERP and billing tools promptly.
- Inform suppliers and customers about price changes.
- Track ITC carefully after applying new rates.
- Revalue stock bought at old rates.
- Adjust prices to balance savings and margins.
- Keep proper paperwork for audits.
Conclusion
In conclusion, the 56th GST Council’s changes give the healthcare industry a push toward affordability and inclusivity.
By responding quickly and maintaining clear records, organisations can pass on savings to patients while staying compliant.
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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
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Published on: September 16, 2025
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