GST Updates – Health Sector (Drugs, Medical Devices & Services)

Effective Date: 22nd September 2025

This circular summarizes all major GST changes affecting medicines, medical devices, equipment, oxygen, and biomedical services for easy implementation by healthcare providers.

Lifesaving Drugs & Medicines

GST Change: 5% ➝ Nil
Applicable Products (3 lifesaving drugs for cancer, rare diseases, and chronic illnesses):

• Agalsidase Beta

• Imiglucerase

• Eptacog alfa (activated recombinant coagulation factor VIIa)

GST Change: 12% ➝ Nil
Applicable Products (33 lifesaving drugs):

• Onasemnogene abeparvovec

• Asciminib

• Mepolizumab

• Pegylated Liposomal Irinotecan

• Daratumumab / Daratumumab SC

• 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

• Belumosudil

• Miglustat

• Velmanase Alfa

• Alirocumab

• Evolocumab

• Cystamine Bitartrate

• CI-Inhibitor injection

• Inclisiran

GST Change: 12% ➝ 5%
Applicable Products (all other drugs & medicines for personal use, including OTC and chronic medicines):

• Fluticasone Furoate + Umeclidinium + Vilanterol (FF/UMEC/VI)

• Brentuximab Vedotin

• Ocrelizumab

• Pertuzumab

• Pertuzumab + Trastuzumab

• Faricimab

• All other OTC and chronic medicines

Medical Devices, Apparatus & Equipment

GST Change: 18% ➝ 5%

• Various medical apparatus and devices used for medical, surgical, dental, or veterinary purposes, including devices for physical/chemical analysis

• Thermometers for medical, surgical, dental, or veterinary use

• Instruments & apparatus for medical, surgical, dental, or veterinary use for physical or chemical analysis

GST Change: 12% ➝ 5%

• Wadding, gauze, bandages, and similar articles (impregnated with pharmaceuticals or packaged for retail sale)

• Diagnostic kits and reagents

• Blood glucose monitoring systems (Glucometer)

• Photographic plates and films for X-ray (medical use)

• Surgical or medical examination rubber gloves

• Instruments & appliances used in medical, surgical, dental, or veterinary sciences (scintigraphic, electro-medical, sight-testing instruments)

• Apparatus based on X-rays or alpha, beta, gamma radiation (radiography, radiotherapy, X-ray tubes, generators, control panels, screens, tables, chairs, lights)

Medical Gases

GST Change: 12% ➝ 5%

• Medical grade oxygen

Health Services – Biomedical & Effluent Treatment

GST Change: 12% with ITC ➝ 5% with ITC

• Services by way of treatment of effluents by a Common Effluent Treatment Plant (CETP)

• Services by way of treatment/disposal of biomedical waste or incidental processes by a common biomedical waste treatment facility to a clinical establishment

Key Implementation Notes for Health Sector Clients

• Effective Date: 22nd September 2025 – All products & services above must be billed at revised GST rates.

• Impact: Reduction in GST will lower treatment costs, especially for patients with cancer, rare diseases, chronic illnesses, and those requiring medical devices or oxygen.

• Billing & Compliance: Hospitals, clinics, pharmacies, and distributors must:

  • Update billing software

  • Update stock records & purchase orders

  • Reflect new rates in patient bills and insurance claims

• Refunds: CBIC will provide 90% provisional refunds for inverted duty structure cases until CGST amendments are finalized.

• Scope: Applies to drugs, medical devices, equipment, oxygen, and biomedical/effluent treatment services.