Next-Generation GST Reforms Slash Taxes on Health Insurance, Medical Items and Daily Essentials

Citizens to benefit from zero GST on health and life insurance, cheaper medicines, and reduced rates on everyday household products under sweeping tax cuts

New Delhi, September 4: In a landmark move aimed at easing the financial burden on households, the GST Council on Wednesday unveiled a series of sweeping reforms that promise relief across healthcare, insurance, and essential commodities.

At the heart of the announcement is the complete removal of GST on individual health and life insurance policies. Until now, these policies attracted 18% GST, often making them expensive for families. By shifting them into the zero-tax bracket, the government has taken a decisive step to make healthcare and financial protection more affordable and accessible to millions of Indians.

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Cheaper Medical Items for Every Household

The reforms also extend to critical medical equipment and supplies. GST on several essential items has been reduced from 12% to just 5%, including:

• Thermometers
• Medical-grade oxygen
• Diagnostic kits and reagents
• Glucometers and test strips
• Corrective spectacles

This move is expected to significantly cut healthcare costs for patients and families, making basic medical support tools more accessible.

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PM Modi: Reforms for the Common Man

Hailing the reforms, Prime Minister Narendra Modi said these next-generation GST measures reflect the government’s commitment to ease of living and ease of doing business.

“The wide-ranging reforms will improve the lives of our citizens and ensure ease of doing business for all, especially small traders and businesses,” the Prime Minister posted on X, adding that the changes will directly benefit the common man, farmers, MSMEs, the middle class, women, and youth.

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Relief in Daily Household Expenses

The GST Council also brought down tax rates on several household essentials, making everyday living more affordable.

• Hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, shaving cream → down from 18% to 5%
• Butter, ghee, cheese, dairy spreads, packaged namkeens, bhujiya, mixtures → reduced from 12% to 5%
• Utensils, feeding bottles, baby napkins, clinical diapers → now at 5%

These cuts are expected to lower household budgets, offering relief to millions of families across the country.

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A Reform That Touches Every Life

With healthcare, insurance, and everyday items becoming cheaper, the latest GST overhaul is one of the most consumer-friendly tax reforms since the rollout of GST. It not only promises economic relief but also reinforces the government’s vision of inclusive growth by making essentials more affordable for ordinary citizens.