Sachin Alug, CEO, NLB Services
“The government’s landmark GST reform represents a crucial step in simplifying India’s indirect tax regime. By consolidating most goods and services into just two slabs—5% and 18%—and maintaining a 40% sin tax on luxury and harmful products, the reform is designed to boost consumer spending, stimulate corporate demand, and ease compliance for millions of small businesses.
Lower GST rates on automobiles, appliances, and electronics are expected to drive higher industry volumes, trigger multiplier effects across manufacturing, and uplift allied sectors such as retail, servicing, repairs, insurance, and financing—especially in the lead-up to the festive and wedding seasons.
This rising demand across supply chains is poised to create jobs not just in factories, but also in sales, logistics, and field services. Labour-intensive sectors like textiles, footwear, gems & jewellery, and agro-processing will likely see a stronger ripple effect, strengthening MSMEs, improving margins, and supporting long-term employment growth. The full impact on business sentiment and job creation will unfold over the next 6 to 9 months.”
"The GST 2.0 is a welcome step for both consumers and brands like ours. It not only reduces the cost burden of purchasing lifestyle electronics such as TVs and projectors but also encourages customers to opt for higher-end, larger-screen models that are often considered luxury items. The timing makes this move even more impactful, as the revised rates will come into effect during the festive season, when people actively purchase and gift electronics, giving a boost to the consumer electronics market. At XElectron, we offer innovative products such as smart projectors, LED TVs, digital photo frames, and monitors, and this change ensures that consumers can now enjoy them at even more attractive prices, especially for festive gifting."
GST Relief on Life-Saving Drugs: Patients to Get Major Benefit, Experts Share Their Views
New Delhi. After the 56th meeting of the GST Council, the central government has made a big announcement for patients. Finance Minister Nirmala Sitharaman, during a press conference, stated that GST has now been completely removed from 33 life-saving drugs. Earlier, these drugs attracted 12% GST. These include medicines used in the treatment of cancer as well as several other serious and rare diseases. In addition, GST on three other life-saving drugs has been reduced from 5% to zero. Meanwhile, GST on some other medicines has been reduced from 12% to 5%.
Direct Savings for Patients
Experts believe this decision will bring huge relief to patients since the treatment of diseases like cancer is already very expensive. With drug prices expected to fall, the direct financial burden on families will reduce.
Major Support for the Poor and Middle Class
The treatment of cancer and rare diseases often continues for a long time. The monthly cost of medicines can shatter the financial stability of families.
Dr. Durgatosh pandey, director surgical oncology at Asian Hospital, says,
"Every year, millions of new cancer cases are reported in India. Most of these patients belong to poor and middle-class families. With GST removed, medicines will become relatively cheaper, allowing more patients to afford them. This is a historic step in the healthcare sector."
Relief for Patients with Rare Diseases
This GST relief is not limited to cancer alone but also applies to medicines used for rare genetic disorders and autoimmune diseases. Although the number of such patients is small, their treatment costs are extremely high.
Dr. Pratik Patil, Consultant - Oncologist at Jupiter Hospital, Pune, explains,"Medicines for many genetic disorders are so costly that yearly expenses can run into lakhs of rupees. With this decision, families will face less financial burden and timely treatment will be possible. It is a major step toward healthcare equity."
Easier Access to Medicines
According to experts, this decision will not only reduce the financial strain on patients but will also ensure easier access to medicines. Due to high treatment costs, patients often stop taking medicines on time, which worsens their health. With reduced taxes, this situation is expected to improve.
The government’s move will undoubtedly bring relief to patients and their families. Lower taxes on life-saving drugs will reduce treatment costs and allow more people to get timely access to medicines. For millions battling cancer and rare diseases, this decision will serve as a new ray of hope.
-------------------------------
Doctors’ Opinion: Ending Tax on Insurance and Medical Equipment is a Historic Step
New Delhi. In the 56th meeting of the GST Council, several major decisions were taken to provide big relief to patients and the general public. The GST on several essential medical products, which was earlier 18%, has now been reduced to 5%. This includes crucial equipment like thermometers, medical-grade oxygen, all diagnostic kits and reagents, glucometers and test strips, and spectacles. Earlier, these items attracted 12% GST, which has now been reduced to 5%.
Along with this, the government has also taken the historic decision to completely remove GST on premiums for personal life insurance and health insurance policies. Until now, GST at the rate of 18% was levied on health and life insurance premiums.
Direct benefit for the common people
Health sector experts believe that this decision will not only make treatment cheaper for patients but will also reduce the financial burden on the general public. Devices like thermometers and glucometers are used directly in almost every household. At the same time, diagnostic kits and medical oxygen play a crucial role in saving patients’ lives, from hospitals to rural areas.
Dr. Ashish Chaudhry, Managing Director of Aakash Healthcare, says:
"This step will prove to be a milestone in making healthcare services accessible and affordable. Devices like glucometers, diagnostic kits, and medical oxygen are essential for millions of patients every day. Reducing tax will lower their prices and ensure easier access for patients."
GST abolished on health and life insurance
The biggest change is the removal of GST on personal health and life insurance policies. Earlier, the cost of premiums used to rise significantly due to the 18% tax. Now, after this decision, policies will become cheaper and more people will be able to opt for insurance.
Dr. Aakaar Kapoor, CEO and Lead Medical Advisor, City Xray Scan & Clinic says
"The reduction of GST on diagnostic kits and reagents will have a direct impact on the cost of tests. Now patients will be able to get blood tests, X-rays, MRIs, and other diagnostic examinations at lower prices. This will not only provide financial relief to patients but also make timely testing easier, helping in the early detection of diseases."
Major change in the healthcare sector
Experts believe that these reforms will create a positive environment in the healthcare sector.
With medical equipment becoming cheaper, hospitals in rural and small towns will also be able to purchase them easily.
-
-With greater health insurance coverage, more people will be able to afford treatment costs.
-It will help strengthen medical infrastructure.
The government’s decision has brought a double relief of “affordable medicines and equipment & affordable insurance” to the healthcare sector. On one hand, it will reduce the burden of treatment on patients, and on the other hand, it will make insurance easier for the general public. This step is being seen as a major reform in making healthcare universal and accessible in India.
Amit Mahajan, Director, Paras Defence & Space Technologies Ltd
With GST reforms reducing GST on Drones and exempting Military Drones and Drone components such as Batteries is a clear indication that Drones are being recognized as a platform of the future. Be it commercial applications or military, impact of drones on our lives is inevitable and the new reforms will boost the industry and encourage technology development in this space. The new reforms have entrusted faith in Drone Platforms to become a high volume industry with enabled supply chain.
.jpg)