The reforms extend beyond medicines. Individual medical and life insurance policies, including family floaters and senior citizen policies, will now be exempt from GST. Previously, these attracted an 18% tax, which inflated premium costs. Medical equipment and diagnostic supplies have also seen relief.
Policy changes could lead to Cheaper Medicines in India, benefiting millions of people. Products such as bandages, gauze, diagnostic kits, reagents, and glucometers will now fall under the 5% slab, down from 12%. Even corrective eyewear, such as spectacles and goggles, has seen a significant tax cut from 28% to 5%.
According to Finance Minister Sitharaman, “The reduction of GST on essential medicines and health services is intended to directly ease the financial burden on patients while expanding access to affordable healthcare.”
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