In the Rajya Sabha, the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, on 21 July 2026, informed that the GST rate on 36 specified life-saving drugs and medicines has been reduced from the earlier rates of 12 per cent or 5 per cent to Nil.
The information was provided in a written reply to Rajya Sabha Unstarred Question No. 247, titled “Reduction of GST Rates for Life-Saving Medicines and Equipment.”
The Minister stated that, according to available records, the Government has not received any representation from traders, manufacturing units or the service sector in Tamil Nadu seeking a reduction in GST rates on life-saving medicines, equipment or service products.
Shri Pankaj Chaudhary further informed the House that GST rates are prescribed on the recommendations of the GST Council, a constitutional body comprising representatives of the Union Government and the States and Union Territories.
At its 56th meeting held on 3 September 2025, the GST Council undertook comprehensive rationalisation of GST rates in the healthcare sector. As part of this exercise, the GST rate on 36 specified life-saving drugs and medicines was reduced to Nil.
All other drugs and medicines attract a concessional GST rate of 5 per cent, except those that have been specifically exempted.
The GST Council also rationalised the tax rates applicable to medical devices, instruments and apparatus used in medical, surgical, dental and veterinary sciences. These products, unless specifically exempted, now attract a concessional GST rate of 5 per cent.
The Unstarred Question can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/07/RS-Reduction-of-GST-rates-for-life-saving-medicines-and-equipment-21.07.2026.pdf
