New Delhi, Sep 4
The Goods and Services Tax rate cuts in the healthcare sector are a bold step and will go a long way in advancing the vision of a Swasth Bharat underpinning a Samriddh Bharat, said industry experts on Thursday, while hailing the move.
In a landmark move, the GST Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday rationalised the indirect tax structure, cutting the current four slabs down to two -- scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.
As per the revision, life-saving drugs, health-related products, and some medical devices will see a rate cut from 12 per cent/18 per cent to 5 per cent or nil.
Notably, the GST rates for 33 cancer drugs and rare medicines have been reduced from 12 to zero per cent.