Gaurav Dubey, Founder and CEO of Livlong 365:
“The GST Council’s decision to exempt life and health insurance premiums from the 18 per cent tax is a landmark reform that directly addresses affordability—a key barrier for millions of Indians. For years, the tax burden discouraged first-time buyers from securing essential health or life cover, often delaying financial protection until it was too late. By removing this levy, the government has opened the doors for wider adoption, particularly among young earners, families in Tier-2 and Tier-3 cities, and those who are highly price-sensitive.
While insurers will need to recalibrate their models in light of the withdrawal of input tax credit, the broader impact is overwhelmingly positive. This change transforms insurance from being perceived as a discretionary expense to being viewed as a necessity, strengthening the safety net for households across the country.
India’s insurance penetration, still at around 4 per cent compared to the global average of over 7 per cent, highlights the urgency of policy measures like this. If coupled with greater awareness and simplified distribution, this reform could significantly narrow the protection gap, expand coverage to the underinsured, and contribute to building a healthier and financially resilient India.”
Dr GSK Velu, Chairman & Managing Director, Trivitron Healthcare, Neuberg Diagnostics and Maxivision Super Speciality Eye Hospitals:
“These new GST reforms are path breaking and should overall boost our economy and benefit every citizen of India. We welcome the decision to reduce GST from 12 per cent to 5 per cent for medical devices, diagnostics instruments and reagents. We also welcome the nil GST on medical insurance, general insurance and few lifesaving drugs. Also if the well intended reforms on GST reforms and resolution to inverted duty structure is well implemented it will benefit all industries and will ensure desired benefit reaches end consumers.”
Ajay Mahipal, Co-founder & General Partner, HealthKois
“The recent GST reforms represent a landmark advancement for India’s healthcare sector. With medical inflation running at around 10-12 per cent annually, these reforms are poised to ease the financial pressure on households by making healthcare more affordable and accessible. In the high-impact fields of oncology and rare disease treatment, the exemption of GST eases, albeit marginally in few cases, financial burdens for families and improves patient adherence to life-saving therapies. Onasemnogene abeparvovec, a rare disease drug for SMA, has seen reduction of GST from 12 per cent slab to nil. Similar reduction has been introduced for several targeted cancer drugs (e.g. Daratumumab) and drugs for management of chronic diseases. Eliminating GST on biologics for oncology and rare diseases will enable repricing of treatments and thereby widening access and integrating advanced care.
Reduction of GST from 12 per cent to 5 per cent on various medical equipment and supplies devices such as wadding gauze, bandages, diagnostic kits and reagents, blood glucose monitoring system etc. Home diagnostic devices like glucometers are now more affordable, accelerating access to chronic disease management and preventive care.
Exempting health insurance from GST is a game changer, addressing a vital challenge as majority Indians still pay for healthcare out of pocket due to limited insurance coverage. This bold move not only makes insurance more affordable but fuels broader adoption for patients to experience higher quality of care.
Similarly, reduction of GST from 28 per cent to 18 per cent on ambulances will make emergency response more accessible in India by high quality players.
Taken together, these reforms signal a patient-first vision that breaks down cost barriers, nurtures innovation, and lays the foundation for a healthcare ecosystem that is both inclusive and sustainable. As we look ahead, it is clear, the ongoing GST reforms are expected to accelerate adoption, strengthen digital infrastructure, extend healthcare’s reach, and, in doing so, spark a virtuous cycle of innovation, investment, and growth that will ultimately reshape the future of healthcare in India.”
Dhirendra Mahayanashi, Co-Founder and CEO, Turtlemint
“The GST Council has delivered historic relief for consumers. This move has the potential to bridge the gap of affordability and access, particularly in B30 markets, where a large share of the uninsured population resides.
It is important to note for existing policyholders not to delay renewals in anticipation of GST benefits, as this could lead to breaks in continuity and loss of coverage.
This is more than just a tax cut – it is an investment in India’s financial security future, perfectly aligned with the vision of #InsuranceForAll by 2047.”
Suneeta Reddy, Managing Director, Apollo Hospitals
“We welcome the rationalisation of GST, which comes as a corollary to the tax cuts and 100 per cent FDI in insurance announced in the Union Budget earlier this year. Together, this provides a valuable platform to make healthcare more accessible and affordable. The reduction in GST rates of life-saving and other drugs, and the standardisation of GST for consumables are very positive steps both for the patient and for the sector. India’s aspiration for more health infrastructure will be well-served with the reduction in GST for construction inputs like cement, fly ash bricks, marble and granite. Above all, we believe this will enable many more Indians to purchase health insurance and insurers will serve a larger insured pool. This will truly unlock access to high-quality healthcare for India.”
Vishal Bali, Executive Chairman, Asia Healthcare Holdings (AHH)
The GST reforms under healthcare can be a significant enabler. Only 41% households in India are covered through either govt or private health insurance schemes leaving a significant gap to be covered. Similarly, life insurance penetration has been witnessing a decline rather than an increasing trend. Reduction in GST from 18% to nil should give a boost to both these segments which are critical for citizens. The GST reduction in diagnostic kits and reagents to 5% should also catalyse the focus on preventive health. Overall important moves for the sector.
Naveen Chandra Jha, MD & CEO, SBI General Insurance
The GST Council’s decision to reduce tax on the healthcare sector marks a transformative step toward greater affordability and inclusivity. At a time when India’s healthcare market is poised for significant growth, this reform acts as a timely catalyst to strengthen the ecosystem by addressing one of the biggest barriers to quality healthcare affordability.
Whether it is making life-saving drugs more accessible or lowering the cost of health insurance, the move directly tackles a long-standing challenge and will enable millions of families to take a crucial step toward financial and medical security.
For the health insurance sector, this change comes at a pivotal moment. As India’s healthcare needs expand and medical risks evolve, the importance of universal health coverage has never been more evident. Health insurance is not merely a financial product, it is a lifeline that protects families, supports well-being, and builds resilience against future uncertainties.
At SBI General Insurance, we view this reform as a strong driver in accelerating India’s journey toward ‘Insurance for All by 2047.’ Our focus will be on leveraging this opportunity to design affordable, accessible, and customer-centric health insurance solutions, while expanding our reach across rural and semi-urban India.
Rajagopal G, Director & Group CEO, Lifebridge Group
The Next-Generation GST reforms mark a transformative moment — not just in tax rationalisation, but in reimagining how policy can directly improve citizens’ lives. The Government’s recognition of senior citizens through the 0% GST on individual life and health insurance is both empathetic and progressive, addressing a long-standing need with clarity and intent.
Equally significant is the scale of rate reductions across medicines, devices, cement and more — a reflection of deep confidence in India’s economic resilience. For seniors, this translates into lower living costs, more affordable healthcare, and greater access to retirement housing. For the economy, it signals bold reforms rooted in stability and growth.
This is next-generation reform in its truest sense — one that eases life for citizens while fuelling India’s growth story. The onus is now on us, as industry leaders, to harness this momentum to enhance the quality of life for our seniors and build a future that is inclusive, sustainable, and compassionate.
Suryanarayanan, Managing Director, Chola MS General Insurance
Chola MS heartily welcomes the Government of India’s landmark decision to reduce GST rate on health insurance to zero. This momentous move directly translates into lower outgo for the citizens of the country and makes health insurance more affordable to the masses. It also helps them make intelligent choices over the quantum of insurance in terms of higher sum insured covers. . The move also reinforces the fact that health insurance is no longer a luxury, but an absolute necessity for financial protection and peace of mind.
The zero GST regime is a decisive step toward achieving the vision of ‘Insurance for All by 2047’. By easing the financial burden on policyholders, it will encourage first-time buyers, deepen penetration in semi-urban and rural markets, and help build a more inclusive insurance ecosystem.
At Chola MS, we believe this reform will significantly strengthen India’s journey towards universal health coverage and enhance the long-term sustainability of the sector. It is a forward-looking measure that serves the interests of both policyholders and insurers, and we are confident it will accelerate the meaningful expansion of health insurance across the nation.
Dr Shravan Subramanyam, MD, BPL Medical Technologies
The reduction of GST on life-saving drugs, diagnostic kits, and medical equipment from 12 per cent to 5 per cent is a landmark reform. For patients, this translates into lower treatment costs and better access to advanced medical care. For us, it allows greater price competitiveness, helping us pass on the benefit to customers while strengthening our reach across hospitals, clinics, and homecare segments. We see this as a big enabler for growth, as it supports our mission of delivering affordable, world-class, ‘Made in India’ medical solutions while empowering us to scale up innovation and expand into newer markets.
Bhanu Prakash Kalmath SJ, Partner and Healthcare Industry Leader, Grant Thornton Bharat
The reduction in GST rates carries wide-ranging implications for India’s healthcare sector. The move to cut GST on individual health and life insurance premiums from 18 per cent to nil is expected to make coverage more affordable, encourage uptake among individuals—including the “missing middle”, and help bring down out-of-pocket expenditure.
The overall reduction on drugs, consumables, equipment, and life-saving medicines will lower treatment costs, ease the financial burden on patients, and provide direct savings to hospitals. With diabetes affecting nearly 10 per cent of India’s adult population and non-communicable diseases on the rise, cheaper glucometers and test strips will further support early detection, better disease management, and align with the government’s focus on preventive healthcare.
Rajagopal G, Director and Group CEO, Lifebridge Group
The Next-Generation GST reforms mark a transformative moment — not just in tax rationalisation, but in reimagining how policy can directly improve citizens’ lives. The Government’s recognition of senior citizens through the 0 per cent GST on individual life and health insurance is both empathetic and progressive, addressing a long-standing need with clarity and intent.
Equally significant is the scale of rate reductions across medicines, devices, cement and more — a reflection of deep confidence in India’s economic resilience. For seniors, this translates into lower living costs, more affordable healthcare, and greater access to retirement housing. For the economy, it signals bold reforms rooted in stability and growth.
This is next-generation reform in its truest sense — one that eases life for citizens while fuelling India’s growth story. The onus is now on us, as industry leaders, to harness this momentum to enhance the quality of life for our seniors and build a future that is inclusive, sustainable, and compassionate.
Dr Azad Moopen, Founder and Chairman, Aster DM Healthcare
The recent decisions by the GST Council, particularly the exemption of individual health and life insurance from GST, and the reduction on essential drugs, signal a positive pivot for India’s healthcare affordability. The GST reductions on essential and life-saving medicines are a commendable step towards patient-centric healthcare. By removing or lowering taxes on critical drugs, especially those used in cancer and rare disease treatments, the government has directly lightened the financial burden on patients and their families.
The removal of GST on health and life insurance will also immediately reduce the financial burden on citizens seeking healthcare protection, strengthening affordability. This is a landmark step forward in making preventive health coverage more accessible. Meanwhile, the reduction in GST on cement from 28 per cent to 18 percent will have a meaningful impact on the health infrastructure development. This could lower building costs and accelerate hospital expansions and infrastructure projects, indirectly supporting faster enhancement of care delivery.
Together, these initiatives foster long-term growth in healthcare reach and capability. Aster DM Healthcare welcomes these reforms as they align with our vision of expanding accessible, affordable, and comprehensive care across India.
Pavan Choudary, Chairman, MTaI
From medicines to cement, these broad price reductions signal the government’s confidence in India’s economic momentum. In healthcare, they underline a clear commitment to affordability and universal access. Lower levies on diagnostics and medical devices will widen their reach, while reduced insurance costs and lower-cost medical supplies will bring particular relief to the elderly, which is deeply satisfying for us.
The reduction in GST on devices, diagnostic kits, and hospital supplies is expected to bring down treatment costs, making home-use technologies such as glucometers and blood pressure monitors more affordable and expanding access to essential diagnostics in semi-urban and rural areas. Exempting health insurance premiums from GST adds further relief, widening coverage and benefiting the elderly and vulnerable.
These measures are likely to ease costs for patients and providers, encourage timely diagnosis, and support better treatment adherence, helping reduce the long-term burden on families and the health system. MTaI urges industry stakeholders to pass on GST benefits to the patients and strengthen competitiveness.
Akshay Verma, Co-founder, FITPASS
We’re thankful that our letters and representations have found resonance with the Government. For a sector not even formally designated as an industry, being heard at this level is historic — and we welcome the decisive move by the Hon’ble Prime Minister, the Finance Minister and the GST Council to rationalise GST on fitness and physical well-being to 5 per cent. This underscores the simple truth that the Govt recognises fitness as an essential services, a pillar of preventive health, not a luxury.
This lower rate will make memberships, yoga and coaching more affordable and accessible, especially for women and youth in Tier-2/3 India. With 8,000+ partner gyms in 130+ cities and 6 million members, FITPASS will pass this benefit through and take guided activity to millions.
To serve the nation and in our submissions, we sought a framework that puts prevention on a par with healthcare — either a 5 per cent rate with input credit retained or complete exemption for structured fitness. The Council’s move to 5 per cent (without ITC) is a strong interim outcome but it is not a complete solution for large scale impact for our country’s young demographic dividend.
Over the years, we’ve worked consistently with government and citizens to put prevention at the centre of policy — from the 2018 reduction of GST from 28 per cent to 18 per cent to IRDAI’s 2020 inclusion of fitness services in insurance products. We’re grateful that this sustained advocacy has found resonance in today’s decision.
We’ve come a long way. There is more to do.
From here, we will work with the Government to evolve national policy and create fitness access at scale — aligning intent with action. A thoughtful reclassification that places structured fitness — gyms, yoga, coaching, nutrition counselling — within Heading 9993 (Human Health & Social Care Services), alongside AYUSH, naturopathy and rehabilitation, would give fitness parity with preventive healthcare and keep affordability durable across Bharat — turning today’s milestone into its natural progression: parity under 9993 for healthier citizens, stronger productivity, and steady momentum towards Viksit Bharat 2047.
Balachander Sekhar, CEO, RenewBuy
We welcome the government’s landmark decision to exempt all individual life and health insurance policies from GST. This exemption will bring down costs in health insurance for families, especially seniors, making insurance more affordable and accessible. Similarly, exemption of GST on all individual life insurance policies- including term life, ULIP, or endowment policies, will boost insurance penetration, especially among first-time buyers and middle-income families, and help the country move towards- Insurance for All by 2047.
This progressive step will make life protection and healthcare coverage more affordable and accessible for millions of Indians. For senior citizens and vulnerable segments, in particular, this exemption is a huge relief. It will encourage greater adoption of health and life insurance products, reduce out-of-pocket expenses and strengthen the country’s financial safety net.
Dr Shuchin Bajaj, Founder-Director, Ujala Cygnus Healthcare Services
We welcome the government’s decision to reduce the GST on critical medicines and medical devices to 5% and exempt life and health insurance from GST altogether. These rate reductions will immediately lower the cost of angioplasty stents, cancer drugs, dialysis consumables, and essential diagnostics in our 25+ hospitals, making quality care more affordable to millions of middle- and low-income families.
By lowering the price of insurance premiums, the nil GST on health and life cover will encourage more people to protect themselves and their loved ones, reducing the need for catastrophic out-of-pocket spending. Together, these measures will expand early diagnosis, strengthen preventive care, and accelerate India’s journey toward universal health access goals that Ujala Cygnus remains committed to every single day. We would also continue to urge the government to allow hospitals and healthcare establishments to take benefit of GST input credit, as this will lower the cost of healthcare to patients even further.
Dr Sunita Maheshwari, Paediatric Cardiologist and Chief Dreamer, RxDx Clinics
These GST reforms are a milestone step in making quality healthcare accessible and affordable to millions of Indians. By lowering GST on a large number of medicines from 12 per cent to 5 per cent, slashing rates on medical devices, and including 33 lifesaving drugs — for cancer and rare diseases — in the zero-tax slab, the government has made a bold move in curbing the cost of treatment burdening patients and families.
Just as valuable is the exclusion of health and life insurance premiums from GST, which we feel will induce more families to take timely insurance cover and protection. With more individuals taking preventive care, early diagnoses, and organised treatment, this step has the potential to change healthcare outcomes throughout communities.
We believe this change will strengthen India’s primary healthcare framework and lead to better health outcomes across communities.
Sonia Mehta, MS, RDN, Founder, Everbloom
The GST Council’s decision to cut rates on medicines, life-saving therapies, and medical devices is not just a tax change — it’s a relief that will be felt in households across the country. By bringing GST on critical drugs down to zero and reducing rates on a wide range of medicines and medical devices to 5 per cent, the government has made treatment more affordable for patients managing cancer, rare diseases, and chronic conditions. For older adults and their caregivers, this reform eases the financial strain of consistent healthcare — whether it’s medicines, diagnostic kits, or mobility aids.
Nikkhil K Masurkar, CEO, Entod Pharmaceuticals
The Government’s decision to reduce GST on medicines and healthcare products is a welcome and progressive step that will make treatment more affordable and accessible for patients across India. It reflects our nation’s vision of universal healthcare access and further strengthens India’s position as the ‘Pharmacy of the World.’
That said, there remain valid concerns around an inverted duty structure. While finished medical devices are now taxed at 5 per cent, inputs such as raw materials, APIs, excipients, packaging, and components continue to attract GST rates of 12–18 per cent. This imbalance reduces the ability of manufacturers to fully claim input tax credits (ITC), thereby squeezing industry margins, straining cash flows, and potentially disadvantaging small and medium-sized domestic manufacturers who are central to India’s healthcare supply chain. Unless addressed, this could weaken the larger objective of boosting domestic production.
In this regard, I support the call for a 3 to 6 month transition period to adjust packaging, labeling, and supply-chain operations. A phased approach would provide the industry with the flexibility it needs while ensuring the uninterrupted availability of essential medical devices for patients. Looking forward, the larger goal must be to move towards zero import duty and GST on sight-saving equipment, devices, and drugs, along with a reduction in customs duties on raw materials and APIs. Such steps will improve affordability, support domestic manufacturing, and provide patients with advanced, cost-effective healthcare solutions. As an industry, we remain committed to partnering with policymakers to balance affordability for patients with sustainable growth for manufacturers.
Avinash Ojha, Managing Director, RG Hospitals
The Government’s recent reforms in GST on essential medicines and medical devices reflect a strong commitment to easing the financial strain of healthcare. Waiving GST completely on 33 lifesaving medicines, along with reducing it to NIL for critical drugs used in cancer, rare diseases and chronic illnesses, is a welcome relief for countless patients and their families, many of whom face daunting medical expenses. This is not merely a tax adjustment but a pivotal step in making life-sustaining treatments more accessible and affordable for the most vulnerable. Equally encouraging is the reduction of GST on all other medicines from 12 per cent to 5 per cent, which will help bring down the recurring cost of treatments, especially for those requiring long-term care.
The lowering of GST from 18 per cent to 5 per cent on medical apparatus and from 12 per cent to 5 per cent on supplies such as diagnostic kits, glucometers, bandages and regents will also make diagnostics and routine medical care more affordable and accessible. These measures will substantially reduce out-of-pocket expenses, which remain a major barrier to quality healthcare in India, strengthening patient care systems and enabling hospitals to deliver timely interventions without cost concerns. Beyond fiscal benefits, this reform signals a strategic, people-centric shift in tax policy—prioritising health equity and aligning taxation with social welfare. It paves the way for enhanced availability of vital medicines and medical technologies, especially in remote and semi-urban areas, thus advancing the government’s vision of a Swasth Bharat.
The ripple effects of this reform extend beyond patients, also delivering clarity and stability to the pharmaceutical industry and healthcare providers. By rationalising tax slabs and eliminating ambiguity, it encourages transparent pricing, fuels innovation, and empowers the sector to meet growing healthcare demands effectively. Ultimately, this progressive move marks a significant milestone on the path towards affordable, high-quality healthcare for every citizen, embodying a deeper resolve to transform health outcomes and reduce inequities across the nation.
Dr Pallavi Sharma, Director, Kailash Hospitals
The GST reforms in the healthcare and medical devices sector are a welcome step towards reducing the financial burden on patients while ensuring greater accessibility of quality care. By lowering GST on critical medical devices and diagnostics, the government has not only made treatment more affordable for patients, especially those with chronic conditions, but also created an environment that encourages wider adoption of advanced technologies across healthcare settings. This move will further boost demand, promote innovation, and strengthen India’s healthcare ecosystem by making world-class solutions more accessible to both urban and rural populations. The zero tax on health insurance will also make insurance more affordable and extend coverage to a larger section of the middle class, while the waiver of tax on life-saving drugs provides timely relief to patients battling critical illnesses. Ultimately, these reforms strike the right balance between affordability and progress, benefiting patients, providers, and the industry alike.
Deepak Sharma, Co-Founder and CEO, Medlern
The government’s initiative to streamline GST represents a forward-thinking reform that will have a beneficial impact on the med-tech industry. Previously, elevated tax brackets often raised expenses and hindered the uptake of advanced solutions. By simplifying the tax structure and lowering the rates, the updated policy fosters an environment conducive to innovation, cost-effectiveness, and broader access.
The timing of this change is crucial, as the integration of digital transformation and technology-driven solutions is increasingly becoming essential in various sectors. A simplified GST framework not only lessens compliance burdens but also facilitates the quicker implementation of modern tools and platforms across different contexts.
This reform is anticipated to spur investment, boost innovation, and enhance India’s reputation as a center for affordable, high-quality med-tech solutions. In the end, this is a strategy that brings advantages to both the industry and the end-users.
Madhusudhan HK, Country Manager, Aerolase
The government’s decision to reduce GST on medical devices is a positive move that will provide essential relief to both manufacturers and consumers. Previously, numerous types of devices were subjected to higher tax rates, which drove up costs and frequently limited broader acceptance. The timing of this announcement holds great importance, given the increasing need for dependable and cutting-edge devices across various sectors. An easier GST framework not only minimizes compliance difficulties for manufacturers and distributors but also facilitates wider acceptance. This reform is anticipated to enhance innovation, promote investments, and reinforce India’s standing as a marketplace for economical, high-quality devices. In general, this is a decision that harmonises cost-effectiveness with development, benefiting both the industry and consumers.