
GST rate cut: India's central government-led GST Council, after its 56th Meeting on 3 September 2025, announced that the nation's future move to move on to a ‘two-tier’ tax system.
Under this ‘two-tier’ tax system, the government has updated the goods and services tax (GST) structure, where commodities sold in the nation will fall under the 5% or the 18% tax bracket, depending on their nature.
According to the current GST norms, the indirect tax is levied in four slabs — 5%, 12%, 18% and 28%, which the government has now changed. However, the central government has also exempted taxes on a list of lifesaving medicines and drugs to boost their sales in the country.
A list of 36 lifesaving medicines and drugs will become cheaper starting from Monday, 22 September 2025, after the central government-led GST Council decided to waive off the tax in the majority of cases on the following items to be sold in the nation.
The three lifesaving medicines and drugs mentioned below, which used to have a 5% GST rate, will now attract ‘nil’ tax under the new GST structure of the nation.
1. Agalsidase Beta
2. Imiglucerase
3. Eptacog alfa activated recombinant coagulation factor VIIa
From Monday, the following lifesaving drugs and medicines will attract zero tax under the revamped GST structure, compared to their earlier 12% GST levels.
4. Onasemnogene abeparvovec
5. Asciminib
6. Mepolizumab
7. Pegylated Liposomal Irinotecan
8. Daratumumab
9. Daratumumab subcutaneous
10. Teclistamab
11. Amivantamab
12. Alectinib
13. Risdiplam
14. Obinutuzumab
15. Polatuzumab vedotin
16. Entrectinib
17. Atezolizumab
18. Spesolimab
19. Velaglucerase Alpha
20. Agalsidase Alfa
21. Rurioctocog Alpha Pegol
22. Idursulphatase
23. Alglucosidase Alfa
24. Laronidase
25. Olipudase Alfa
26. Tepotinib
27. Avelumab
28. Emicizumab
29. Belumosudil
30. Miglustat
31. Velmanase Alfa
32. Alirocumab
33. Evolocumab
34. Cystamine Bitartrate
35. CI-Inhibitor injection
36. Inclisiran
The GST Council's decision also showed that all drugs and medicines, including the following components, will be subject to a lower tax structure of 5% GST, compared to their 12% current levels, effective Monday, 22 September 2025.