New Delhi, Sept 4, 2025 – Just ahead of Diwali, the government has announced a major relief for households and patients battling life-threatening diseases. In its 56th GST Council meeting held on September 3, chaired by Finance Minister Nirmala Sitharaman, the council approved a restructured GST slab system and granted complete tax exemption on several critical medicines, food products, and education-related items.

This decision is being seen as a Diwali gift for millions of common citizens, who will now be able to access life-saving drugs and everyday essentials at lower prices. The new tax regime will come into effect from September 22, 2025, coinciding with the start of Navratri.

GST Council’s Major Decisions

At the 56th meeting, the Council simplified the GST structure by:

• Retaining only 5% and 18% slabs

• Removing the 12% and 28% categories

• Introducing 40% GST on luxury and sin goods (like large cars, tobacco, and private aircraft)

• Announcing zero GST on essential drugs, education materials, and certain packaged food products

While the 40% GST rate targets luxury consumption, the zero-tax bracket ensures affordability for essential medicines and products.

Which Medicines Are Now GST-Free?

The Council has scrapped GST on 33 life-saving and rare disease medicines, many of which previously attracted 12% GST. This move will substantially reduce treatment costs for cancer, blood disorders, and rare genetic diseases.

Some of the key drugs exempted include:

• Onasemnogene abeparvovec (used for spinal muscular atrophy)

• Asciminib, Mepolizumab, Daratumumab (including subcutaneous)

• Teclistamab, Amivantamab, Alectinib

• Risdiplam, Obinutuzumab, Polatuzumab vedotin

• Entrectinib, Atezolizumab, Spesolimab

• Velaglucerase Alpha, Agalsidase Alfa, Laronidase

• Olipudase Alfa, Emicizumab, Idursulphatase

• Alirocumab, Evolocumab, Inclisiran

These medicines treat cancers, rare genetic conditions, metabolic disorders, and autoimmune diseases. Until now, patients bore heavy financial burdens due to high treatment costs and GST; this exemption is expected to save thousands to lakhs of rupees per patient annually.

Other Products Made GST-Free

Alongside medicines, the Council has exempted several food and education products, making them more affordable for households and students.

Food Products:

• UHT (Ultra-High Temperature) milk

• Packaged and labelled paneer (cottage cheese) and chhena

• Pizza bread

• Khakhra, chapati, roti

• Paratha and other Indian flatbreads

Education Items:

• Exercise books, graph books, laboratory notebooks

• Erasers (rubbers)

• Uncoated paper and paperboard

This move is expected to bring relief to parents, schools, and small businesses in the education sector.

Public and Industry Response

Healthcare professionals and patient advocacy groups have hailed the exemption as “a historic and compassionate step”. Industry insiders believe it will increase insurance coverage utilization and improve access to advanced treatments in India.

Families struggling with cancer treatments or rare genetic conditions see this as a ray of hope. For example, the drug Onasemnogene abeparvovec costs crores of rupees; with GST removed, families save lakhs instantly.

Educational institutions and food sector stakeholders have also welcomed the decision, as lower costs on essentials like milk, bread, and notebooks will directly benefit students and middle-class households.

Why It Matters

1. Affordable Healthcare – Eliminating GST reduces out-of-pocket medical expenses.

2. Support for Education – Tax-free books and stationery make learning more accessible.

3. Relief for Households – Cheaper food essentials provide immediate financial respite.

4. Balanced Tax System – Luxury goods face higher GST while essentials are made affordable.

Bottom Line

From September 22, 2025, buying cancer medicines, rare-disease treatments, packaged milk, paneer, bread, and educational supplies will no longer include GST. The move is being seen as the government’s “Diwali gift” to citizens, aimed at easing financial stress while ensuring equitable taxation.

This policy not only reduces household expenses but also strengthens India’s healthcare and education accessibility—two areas most critical for long-term growth.