GST Cuts on Insurance, Medicines, & Devices Win Industry Support: Experts See Boost to Affordable Healthcare
Finance Minister Nirmala Sitharaman announced at the 56th Council meeting on September 3, 2025, describing the move as a step towards lowering healthcare costs and encouraging greater insurance penetration.
The healthcare industry in India received a significant boost when the Goods and Services Tax (GST) Council announced sweeping tax cuts aimed at improving access and affordability in the sector. From September 22, 2025, all individual life and health insurance premiums will be exempt from GST, reducing the tax rate from 18% to zero. At the same time, the government has cut GST on medicines and medical devices to 5%, with 33 life-saving medicines being entirely exempt from tax.
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