GST Rate Cut BIG Update: 33 life-saving medicines to get cheaper, life insurance premium to get cheaper by… | Full list here

Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from today as reduced GST rates on about 375 items come into effect.

Written by: Victor Dasgupta Edited by: Victor Dasgupta

Published: September 22, 2025, 7:59 AM IST

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https://www.india.com/business/gsr-rate-cut-goods-services-medicines-life-insurance-lic-tata-1mg-cancer-rare-diseases-severe-chronic-diseases-narendra-modi-nirmala-sitharaman-finance-minister-8089726/ Copy

दवाएं और फार्मा

New Delhi: Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from today as reduced GST rates on about 375 items come into effect. The government has also announced a massive GST Cut on 33 life-saving drugs and medicines. “Three life-saving drugs and medicines used for the treatment of cancer, rare diseases, or severe chronic diseases have come down from 5 percent to zero. There are several drugs and medicines that have been reduced from 12 percent to 5 percent,” the Finance Minister said.

Here’s the list of 33 life-saving drugs with GST cut to nil from 12%, per the 56th GST Council (effective Sep 22, 2025). They treat cancer, rare diseases, & chronic conditions:

1. Onasemnogene abeparvovec
2. Asciminib
3. Mepolizumab
4. Pegylated Liposomal Irinotecan
5. Daratumumab
6. Daratumumab subcutaneous
7. Teclistamab
8. Amivantamab
9. Alectinib
10. Risdiplam
11. Obinutuzumab
12. Polatuzumab vedotin
13. Entrectinib
14. Atezolizumab
15. Spesolimab
16. Velaglucerase Alpha
17. Agalsidase Alfa
18. Rurioctocog Alpha Pegol
19. Idursulphatase
20. Alglucosidase Alfa
21. Laronidase
22. Olipudase Alfa
23. Tepotinib
24. Avelumab
25. Emicizumab
26. Belumosudil
27. Miglustat
28. Velmanase Alfa
29. Alirocumab
30. Evolocumab
31. Cystamine Bitartrate
32. CI-Inhibitor injection
33. Inclisiran

New GST rates :

Reduced to 5 percent

• Hair Oil, Toilet Soap, Soap Bars, Shampoos, Toothbrushes, Toothpaste: 5% (earlier 18%)
  Bicycles: 5% (earlier 12%)
• Tableware, Kitchenware & Household Articles: 5% (earlier 12%/18%)

Reduced to 0% (Nil)

• Ultra-High Temperature (UHT) Milk: 0% (earlier 5%)
• Chena & Paneer: 0% (earlier 5%)
• All Indian Breads (Roti, Paratha etc.): 0% (earlier 5%)

Reduced to 5% (from 12%/18%)

• Namkeen, Bhujia
• Sauces, Pasta, Instant Noodles
• Chocolates, Coffee, Preserved Meat, Cornflakes
• Butter, Ghee

Reduced to 18% (from 28%)

• Air Conditioners
• Televisions (all sizes, earlier >32” at 28%)
• Dishwashing Machines
• Small Cars
• Motorcycles (≤350cc)

In his address to the nation on the eve of rollout of the new reduced tax rates, Prime Minister Narendra Modi said, “GST bachat utsav (savings festival)”, coupled with the hike in income tax exemption to Rs 12 lakh given in the Budget, will be a “double bonanza” for people.

“Now, there will now be only 5 per cent and 18 per cent tax slabs in GST. Most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only have 5 per cent GST,” Modi said.

Modi said the cut in GST rates and the hike in I-T exemption limit will help households save Rs 2.5 lakh crore annually.

“Now, the poor, the neo-middle class, and the middle class are receiving a double bonanza. With the reduction in GST, it will be easier for them to fulfil their dreams,” Modi said.