GST 2.0 Reshapes Indian Healthcare: Major Tax Cuts, Insurance Exemptions Effective Sept 2025

• GST 2.0, effective September 22, 2025, introduces simplified tax slabs and significant reductions for the healthcare sector.
• Most medicines and medical devices now attract 5% GST; 33 critical life-saving drugs are fully exempt (0%).
• Health insurance premiums, including critical illness plans, are now completely exempt from GST, making coverage more affordable.
• Reforms aim to reduce patient costs, boost the medical devices industry, and improve access to critical and rare disease treatments.
• Challenges remain with the inverted duty structure, impacting manufacturers' pricing and cash flow despite rate cuts.