On 21st July 2026, in the Rajya Sabha, the Minister of State for Finance, Shri Pankaj Chaudhary, announced a significant reduction in the GST rate for 36 specified life-saving drugs and medicines. The rates have been reduced from the previous levels of 12% and 5% to Nil.
The information was furnished in a written reply to Rajya Sabha Unstarred Question No. 247, titled “Reduction of GST Rates for Life-Saving Medicines and Equipment.”
The Minister cited that, from the records, the government has not obtained any representation from traders, manufacturing units or the service sector in Tamil Nadu asking for a reduction in GST rates on life-saving medicines, equipment or service products.
Thereafter, Shri Pankaj Chaudhary notified the House that GST rates are mentioned on the suggestions of the GST Council, which is a constitutional body that includes representatives of the Union government and the states and Union Territories.
The 56th meeting of the GST Council, conducted on 3 September 2025, performed complete rationalisation of GST rates in the healthcare sector. As part of this practice, the GST rate on 36 mentioned life-saving drugs and medicines was decreased to Nil.
There is a 5% GST rate on all other drugs and medicines apart from those that have been particularly waived.
Read Also: GST Impact on the Healthcare Industry in India
The GST Council rationalised the tax rates applicable to medical devices, instruments and apparatus utilised in medical, surgical, dental and veterinary sciences. Unless particularly exempted, these products are now subject to a concessional rate of 5% GST.
Read Rajya Sabha Unstarred Question No. 247
