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‘Removing GST on essential items like medical oxygen, health insurance policies a progressive milestone’

According to Dr. Rajiv Kovil, Head of Diabetology and weight loss expert, Zandra Healthcare and co-founder of Rang De Neela initiative, the 40 per cent GST on sugary and energy drinks is a bold, health-driven reform.

Earlier the Indian Medical Association in a statement had said the reduction in GST on critical drugs reflects the government’s commitment to strengthening public health infrastructureEarlier the Indian Medical Association in a statement had said the reduction in GST on critical drugs reflects the government’s commitment to strengthening public health infrastructure. (Credit: Unsplash)

By removing GST on essential items such as medical oxygen, diagnostic kits, corrective aids, and individual life and health insurance policies, the government has eased the financial pressure on families and made quality care more accessible, said several experts.

Speaking about the recent GST reform in the healthcare sector, Vineet Aggarwal, Group COO, Paras Health said this move was a progressive milestone and the exemption on insurance in particular will bring down costs for consumers and encourage wider adoption of health coverage across the country.

According to Dr. Rajiv Kovil, Head of Diabetology and weight loss expert, Zandra Healthcare and co-founder of Rang De Neela initiative, the 40 per cent GST on sugary and energy drinks is a bold, health-driven reform.

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“By making unhealthy choices expensive and essentials cheaper, the government is tackling obesity and diabetes headon. This isn’t just tax policy, it’s preventive healthcare through pricing, nudging India toward healthier lifestyles. Its brilliant also because the message given is if you want to eat unhealthy then you pay more. By using pricing to guide food choices, the government is also imparting the right health education and giving the message that what we eat matters and eat right,” Dr Kovil said.

In a statement issued on Thursday, Ashok Nair, managing director, RPG Life Sciences, said the recent GST rate rationalisation brings much needed relief and benefit for millions of patients by making life-saving drugs more affordable and accessible. “Our presence across branded formulations, active pharmaceutical ingredients, and biosimilars in domestic market empowers us to deliver innovative treatment options in over 10 therapy areas. This tax relief will further enable us to strengthen our mission to serve the healthcare needs,” he added.

Sanjaya Mariwala, Executive Chairman and Managing Director of OmniActive Health Technologies, said, “For businesses, especially the ones engaged in healthcare services and manufacturing, the reform creates an affordability-demand-innovation cycle. Eased taxes also place smaller businesses in a better position to expand, invest, and employ.”

Earlier the Indian Medical Association in a statement had said the reduction in GST on critical drugs reflects the government’s commitment to strengthening public health infrastructure and supporting those battling serious medical conditions such as cancer, chronic diseases, and life-threatening infections.


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