The Indian Medical Association (IMA) has hailed the recent decisions of the Goods and Services Tax (GST) Council as a “landmark reform” that will significantly reduce the financial burden on patients and families.

The reforms, announced on September 3, 2025, include tax cuts on essential medicines and the removal of GST on health and life insurance premiums—key issues the IMA had been advocating for in its representations to the government earlier this year.

Among the most impactful changes is the reduction of GST on cancer drugs and other critical medicines from 12 percent to 5 percent, with some being made completely tax-free. According to IMA, this measure will directly lower the cost of treatment for patients battling life-threatening illnesses.

Equally significant is the government’s decision to exempt individual health and life insurance premiums from GST. Previously taxed at 18 percent, the premiums will now become more affordable, enabling broader insurance coverage and offering families stronger financial protection during medical emergencies.

The Council also simplified the GST structure into two primary slabs—5 percent and 18 percent—aimed at reducing complexity and bringing greater clarity to healthcare-related taxation.

In a statement, IMA expressed gratitude to Finance Minister Nirmala Sitharaman, the GST Council, and the Government of India for what it described as “patient-oriented reforms.” The association noted that the government’s responsiveness was in direct alignment with the concerns raised by IMA in formal communications and public appeals earlier this year.

While welcoming the reforms, IMA reiterated its call for further steps, including the exemption of GST on other life-saving medicines, medical equipment, and hospital beds, as well as the resolution of GST demands on membership fees in accordance with judicial rulings.

“These reforms mark a constructive step towards making healthcare more affordable and accessible. We remain hopeful that other pending issues will also receive due consideration in future deliberations,” the IMA said.