Medicine bills could see a 6-7% dip, say healthcare representatives
Medicine bills are set to see a dip, with GST being brought down on all medicines to 5 per cent and consumables including glucometers and thermometers, among others. On a list of 36 cancer and rare disease drugs, GST has been totally exempted.
This is likely to bring down medical bills by about 6-7 per cent, Sushil Suri, Chairman and Managing Director at Morepen Labs, a company that has a presence in pharmaceuticals and medical devices, told businessline. The new stocks will reflect the reduced prices he said, but since companies keep 60 to 90 days stock with distributors and so on, that will depend on how companies are allowed to clear out that inventory, he explained. Pointing to the thermometers and blood glucose monitoring systems (glucometers) and strips, for example, he said, people will not have to neglect their health, since these are used in daily sugar tests, for example.
Saurabh Agarwal, Tax partner, EY India, agreed that medical bills will see a dip, with medicines and consumables seeing GST being brought down to 5 percent or nil. “It is a pragmatic move by the government,” he said.
Tempering expectation
Ameera Shah, President Nathealth (an apex body for healthcare companies) and Executive Chairperson, Metropolis Healthcare, pointed out that in products directly linked to the consumer like health insurance, glucometers and so on – the GST cut would translate to benefits to the consumer.
Tempering the expectation on the diagnostic front, she said, over 70 per cent of their cost that attracted GST of 18 per cent including rentals, consultancies etc were not impacted by the present recalibration. It will depend on companies, how they use GST cuts on re-agents, diagnostic kits etc, and invest back in the business or through capacity expansion, she said. Echoing similar sentiments, Anand K, Managing Director and Chief Executive with Agilus Diagnostics, said, companies may use the GST cut to offer better packages for consumers.
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Published on September 4, 2025
