Massive GST Cuts to Spur Growth in Pharma Sector
Commerce Minister Piyush Goyal announced significant GST reductions in the pharma sector, expected to boost demand and benefit consumers. Key changes include reducing GST on drugs and medical apparatus to 5%. Goyal urged the industry to pass savings to consumers, promoting national pride in Indian-made products.
- Country:
- India
In a landmark announcement, Commerce Minister Piyush Goyal highlighted substantial reforms in the Goods and Services Tax (GST) system aimed at the pharmaceutical sector. Speaking at the Bharat Nutraverse Expo 2025, Goyal emphasized that the changes are poised to act as significant demand drivers.
On Wednesday, the GST rate on drugs and medicines was slashed from 12% to 5%. In addition, various medical devices and apparatus, used for medical, surgical, dental, or veterinary purposes, saw their GST rate cut from 18% to 5%. Goyal noted these changes would markedly enhance consumption and sales opportunities within the sector.
The Commerce Minister further urged the industry to ensure these savings reach consumers. He stressed the importance of supporting Indian-made products and expressed gratitude to Prime Minister Narendra Modi for championing these reforms, which are expected to strengthen India's position as a global pharmaceutical leader.
(With inputs from agencies.)
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