Healthcare Leaders laud GOI & GST Council for empowering Patients and Providers
New Delhi: It is like manna from heaven for patients. The GST reforms making quality healthcare more accessible and affordable for all have been abundantly welcomed. Except some unmet needs, healthcare leaders termed it just the ticket for patients all and sundry.
Terming it as landmark reform for India’s healthcare sector, Dr. Aashish Chaudhry, Managing Director, Aakash Healthcare said, ‘It is a very welcome step by GST council for the good of healthcare. The move to reduce GST on life-saving drugs and most other medicines to either zero or five percent, and to bring health insurance policies under the zero GST bracket from the earlier 18%, will make treatment and coverage far more affordable. This translates into significant savings for patients, reduced out-of-pocket costs, and better adherence to treatment, ultimately improving health outcomes across the country. With such steps, we shall move towards a healthier and more inclusive India.
‘Equally, the reduction of GST on a wide range of supplies and equipment from 12–18% to 5% is a patient-centric step that will further lower healthcare costs, enhance access, and provide a strong push to India’s healthcare sector. However, for these benefits to truly reach those in need, efficient MRP revisions, timely processing of refunds, and strict checks against profiteering will be essential’, Dr Chaudhry added.
‘At the same time, the issue of GST reversal claims continues to remain a challenge, and we urge the government to look into this matter for smoother implementation of these progressive reforms.’
The Association of Indian Medical Device Industry (AiMeD) has welcomed the GST Council’s landmark decision to rationalize GST rates and simplify the compliance framework, saying it will ease working capital constraints, lower costs for consumers, and strengthen India’s competitiveness in the global MedTech sector. Welcoming the move, Mr. Rajiv Nath, Forum Coordinator, AiMeD, said, ‘We welcome the path-breaking decision to reduce GST from 12% to 5% if refund on accumulated GST due to the inverted GST structure will be made within 7 days as being informed, as our inputs are usually at 18% leading to accumulated GST credit blocking our working capital. We hope GST refunds will also be made available on GST paid on Services & Capital Goods as is the case in other progressive countries like Australia, Singapore & Canada etc to enable us to be globally competitive. We also hope a transition period is provided to switch packaging material to avoid persecution under anti-profiteering measures though we do intend to pass on the GST reduction benefits to the end consumers by reducing MRP proportionately.’
AiMeD noted that the reforms, if swiftly implemented, will provide liquidity relief to domestic manufacturers, enable greater affordability of medical devices for patients, and support the government’s vision of making India a global hub for affordable and high-quality medical devices.
Dr Rajiv Chhibber, Joint forum Coordinator AIMED, said, ‘The MedTech industry warmly welcomes the GST reforms recently announced by the Government of India. This progressive step will immensely benefit the healthcare ecosystem by simplifying taxation, reducing compliance burdens, and streamlining supply chains – enabling companies to operate with greater efficiency and transparency. For an innovation-driven sector like MedTech, these reforms provide the much-needed impetus to enhance domestic manufacturing, boost R&D investments, and scale exports, positioning India more firmly as a global hub for medical technology.
Most importantly, the true beneficiaries of these reforms will be patients. By reducing tax and bringing rationalization in costs, the reforms will directly lower the price of medical devices and technologies. This means that patients’ out-of-pocket expenses – which have historically been a major barrier in accessing advanced healthcare – will see a significant reduction. Affordable and accessible medical technologies will no longer be a privilege, but a standard across urban and rural India alike.
These reforms are a win-win, empowering industry growth while ensuring patient welfare remains at the center. They reflect the Government’s vision of advancing Ease of Living and align seamlessly with India’s long-term goal of Viksit Bharat 2047.
Dheeraj Khatore, CEO and Vice President, AACI America, MD, GHA India and CIO, Emerge Smart Health said, ‘ It is indeed a welcome step. It will increase health insurance adaptation giving in turn more coverage to patients in hospitals increasing hospital business.
Dr. Aakaar Kapoor, Founder & CEO, City Imaging & Clinical Labs said, ‘ The GST reduction on medical equipment and diagnostic kits comes as a big relief for the healthcare sector. The burden of GST has now been lessened, allowing us to channel resources into further advancements. A cut from 12% to 5% represents a direct 7% reduction in input costs — a welcome respite given the huge consumption of kits in diagnostics.
‘So far, private players have been absorbing these costs to keep services affordable, as for us, the patient always comes first. This move will help ease that strain and ensure better cost control for end users. We further appeal to the government to consider making GST zero on all healthcare services and medical equipment, so that the sector can sustain, and continue delivering accessible, quality care.’ Dr Kapoor added.
