GST cut on drugs, medical devices will provide relief to patients, says healthcare industry
GST 2.0 is a double dose of support and growth for the nation and the next-generation reforms have been done to support India’s progress in the 21st century, Prime Minister Narendra Modi said on Thursday (September 4, 2025).
PM Modi noted that five new gems (panch ratna) have been added to India’s vibrant economy through the GST reforms. He said GST has become even simpler and new rates of 5% and 18% will become effective from the first day of Navratri.
Earlier, Union Minister of Commerce and Industry Piyush Goyal urged the industry to make a strong twin commitment to the Prime Minister - first, to pass on every rupee of savings from the GST reduction to consumers, and second, to actively promote Indian products. He stressed the need to support products made with the sweat and toil of hardworking Indians, products nurtured in the soil of India.
Union Finance Minister Nirmala Sitharaman that the decisions would come into effect from September 22 for most items.
Apart from the two rates of 5% and 18%, the new GST system would also include a 40% “special rate” on sin goods such as tobacco and luxury items such as large cars, yachts, and helicopters.
