Goods and Services Tax (GST) reforms are set to be implemented from September 22, marking a historical shift in the country’s indirect taxation with two slabs of 5 per cent and 18 per cent and a special slab of 40 per cent for sin goods.
The GST council, led by Finance Minister Nirmala Sitharaman, early in September announced a major overhaul in the indirect taxation system, aimed at simplifying the slabs, boosting the consumption and rationalizing the rates.
Under the new plan, the government is set to merge the four slabs into two main categories with an additional “sin tax” bracket:
5% slab — for essential goods.
18% slab – for most other goods and services.
40% slab – for luxury and sin goods such as tobacco, alcohol, betting, and online gaming.
This consolidation is expected to make tax compliance easier and also reduce prices on many items currently taxed at 12% or 28%.
A list of 36 life-saving medicines will become cheaper starting from Monday, September 22, 2025.
Agalsidase Beta, Imiglucerase, and Eptacog alfa activated recombinant coagulation factor VIIa, which used to have a 5% GST rate, will now attract ‘nil’ tax.
The following lifesaving drugs will also attract zero tax under the new GST structure, compared to their earlier 12% GST levels. They are:
Onasemnogene abeparvovec | Asciminib | Mepolizumab | Pegylated Liposomal Irinotecan | Daratumumab | Daratumumab subcutaneous | Teclistamab
| Amivantamab | Alectinib | Risdiplam | Obinutuzumab | Polatuzumab vedotin | Entrectinib | Atezolizumab | Spesolimab
Velaglucerase Alpha | Agalsidase Alfa | Rurioctocog Alpha Pegol | Idursulphatase | Alglucosidase Alfa | Laronidase | Olipudase Alfa | Tepotinib | Avelumab | Emicizumab | Belumosudil | Miglustat | Velmanase Alfa | Alirocumab | Evolocumab | Cystamine Bitartrate | CI-Inhibitor injection | Inclisiran
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