GST 2.0 reforms: ‘Health and hospital bills set to come down’
Times of India | 5 September 2025
Kolkata: The steep reduction of GST on a range of medicines, life-saving drugs, and those for cancer treatment and chronic diseases could help reduce the cost of treatment significantly and trim down hospital bills, said private hospitals in Kolkata.
Since medicines comprise 15%-22% of hospital bills on an average, this will make a big difference, said Rupak Barua, MD & CEO of Woodlands Hospital and president of the Association of Hospitals of Eastern India. For cancer patients, the cost of treatment could slide by 15%-20%, he added.
"GST reduction on medical-grade oxygen, anaesthetics, and diagnostic essentials — from 12% to 5%, and exempting life-saving drugs such as agalsidase beta and imiglucerase will directly reduce treatment costs.
GST exemption on health and life insurances will reduce premiums and broaden coverage," said Barua.
GST cut on select consumables, equipment and devices used in heart defect surgeries, X-rays, besides on all radiology and radiotherapy equipment will also reduce hospital expenses, said Charnock Hospitals group CEO Rupali Basu.
Ayanabh Debgupta, regional COO of Manipal Hospitals (East), also highlighted how the GST reforms could reduce average hospitalisation expenses with significant cuts on essential life-saving medicines.
Other than drugs for cancer, chronic and rare diseases, GST on all other medicines has been reduced to 5% from 12%. GST on medical apparatus and devices, surgical, dental, or veterinary usage or for physical or chemical analysis has been reduced to 5% from 12%.
Sombrata Ray, unit head of CMRI Hospital, felt this marks a significant step towards making healthcare ‘more affordable and accessible for all'. While the GST reduction will be a ‘huge relief' for cancer patients, the extent of reduction in financial burden will depend on the drugs prescribed to the patient and their price, said oncologist Subir Ganguly.
"Those on more expensive drugs will obviously benefit more. Also, the frequency at which drugs, that have seen a steeper tax relief, will also determine the reduction of expenditure. Overall, this move should help make cancer treatment affordable to a wider section," said Ganguly. Overall treatment costs are expected to reduce by 5%–7%, said BP Poddar Hospital group advisor Supriyo Chakrabarty. "Combined with lower GST on medical insurance, this move will reduce out-of-pocket expenses and make quality care more affordable.
On average, hospitalisation costs could come down by 8-10%," said Desun Hospital MD Sajal Dutta.