AIOCD Demands GST Cut on Medicines: Life-Saving Drugs Should Be Tax-Free!

AIOCD Demands GST Cut on Medicines: Life-Saving Drugs Should Be Tax-Free!

August 24, 2025

Listen up, medicine buyers! The All India Organisation of Chemists and Druggists (AIOCD), representing a whopping 12.40 lakh chemists and distributors, has made a strong demand. They want the GST on all medicines slashed to just 5%, and for critical, life-saving medicines, zero GST! Imagine medicines for cancer, kidney, and heart diseases, and rare conditions completely tax-free! The AIOCD's appeal, sent to the Union Finance Minister and the GST Council, argues that essential medicines under the Drugs (Prices Control) Order (2013) — which cover 2,817 formulations across 27 therapy areas — should not face extra taxes. “All medicines, vitamins, probiotics, nutritional and food supplements, and baby food should fall under 5 per cent GST,” the association stated. And they didn’t stop there: “Medicines for cancer, kidney, cardiac diseases, chronic/rare disorders, and blood derivatives should be placed under 0 per cent GST.” With plans to scrap the 12% GST slab looming, AIOCD warns that Ayurvedic and preventive medicines should not be hit with higher taxes. They say, “With the 12 per cent GST slab being abolished, all medicines currently in that slab should shift to either 0 per cent or 5 percent.” The top leaders JS Shinde, President of AIOCD, and General Secretary Rajiv Singhal, stressed, “Clear guidelines must be issued to apply revised GST rates on stock purchased under the higher slab.” Their message is clear and powerful: “Medicines are not luxury commodities but lifelines.” Cutting GST will ease the financial burden for millions, especially those without health insurance. This bold move could be a game-changer for affordable healthcare in India. Stay tuned as the government weighs in on this vital issue!

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Tags: Gst on medicines, Aiocd, Life-saving drugs, Essential medicines, Tax reduction, Dpco 2013,

Margherita Drews

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