GST 2.0: Medicines, Devices & Health Insurance Get Cheaper From Today. Here's What To Expect

Starting from today, September 22, 2025, India is set to implement the new GST laws and will undertake significant changes under the reform. It is said to aim at making healthcare more affordable and accessible

under the Goods and Services Tax (GST) 2.0 reform. This revised tax structure is going to introduce two primary GST slabs: 5% for essential items and 18% for most other goods and services. In addition to this, a 40% sin tax on luxury and vice items like sugary drinks, tobacco and online betting. This reform is also going to be impacting the healthcare sector significantly. Here is what one can expect:

1. Health Insurance Premiums Exempted From GST

For the first time, individual life insurance and health insurance premiums are being exempted from GST. This reduces their costs by 18%. This move is aimed to increase the coverage of insurances across the country.

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2. Reduction In GST On Medicines and Medical Devices

The GST levied on all the other drugs and medicines have also reduced from 12% and has come down to 5%. In addition to this, GST on various medical apparatus and other medical, surgical and dental devices, along with veterinary purposes or for physical and chemical analysis has also been reduced from 18% to 5%.

3. Price Reductions On Medical Equipment

Medical equipment required for procedures, like surgical items, glucometers, diagnostic kits and other medical devices as well have become more affordable for both healthcare providers and patients.

Impact One Can Expect

These reforms have come into being to ease the financial burden on individuals and enhance the reach of healthcare coverage throughout the nation. The government wants to encourage the consumers to check their bills and ensure that the revised rates are being passed on by respective service providers. As the GST 2.0 reforms take effect, the focus shifts to ensuring that the benefits reach the consumers promptly, making healthcare more affordable and accessible for.Read More: Bangladesh Sees Record Single-Day Dengue Deaths: How to Stay Safe