GST Rate Cut- Big relief for common people. Many major decisions have been taken in the 56th meeting of the GST Council held on 3 September 2025. Two tax slabs of 5% and 18% were approved in the meeting. While sharing the information about the decisions taken in the meeting, the Finance Minister said that the 12% GST previously applicable on 33 life saving medicines has been removed and made zero. GST on cancer medicines has been made zero.
The treatment of many serious and rare diseases is very expensive. With the removal of GST on these medicines, patients and their families will get direct financial benefit. This decision will provide great relief to those families who face difficulty in affording expensive medicines. Now the cost of treatment will be reduced and patients suffering from serious diseases will be able to get cheap treatment. This new rule will come into effect from 22 September 2025. After this, no GST will have to be paid on the purchase of these medicines across the country.
On which medicines was the tax removed?
These 33 medicines include expensive medicines used in the treatment of cancer, blood disorders, rare genetic diseases and other serious diseases.
onasemnogen 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
White-skinned
Miglustat
Velmanase Alfa
Alirocumab
Evolocumab
Cystamine Bitartrate
C1-Inhibitor (injection)
Inclisiran
Now there will be only 2 tax slabs
Let us tell you that in the 56th meeting of the GST Council, two tax slabs of 5% and 18% were approved. GST rates have been reduced on commonly used products like soap, bicycle, TV and individual health and life insurance policies. New rates on all products except gutkha, tobacco and tobacco products and cigarettes will be applicable from 22 September i.e. the first day of Navratri.
Revenue Secretary Arvind Srivastava said that the financial impact of the change in GST rates will be around Rs 48,000 crore but it will not have any significant impact from the fiscal point of view. Prime Minister Narendra Modi had announced to simplify the tax structure in his Independence Day address. In accordance with the same announcement, the GST Council has approved the change in tax rates.