India has long been a global hub for medical tourism, attracting international patients with its world-class doctors and hospitals and affordable treatment costs. Now, with the latest GST reforms announced on September 22, 2025, the country is poised to become even more appealing to medical tourists.
By slashing GST on life-saving medicines, critical medical equipment, and health insurance policies, India has made healthcare more accessible—not just for its citizens, but for international patients who travel to the country for treatments ranging from cancer care to organ transplants.
Overview of India’s Latest GST Reforms
- Simplified GST Structure: The country moved from four tax slabs to a two-tier system (5% and 18%).
- Insurance Gets Relief: GST on life and health insurance premiums (previously 18%) has now been reduced to 0%, offering direct savings to policyholders.
- Exemption on Life-Saving Drugs: A total of 33 critical medicines, including cancer and rare-disease drugs, are now GST-free.
- Reduced Rates on Medical Devices: Essential medical equipment now attracts only 5% GST, down from 12%.
This sweeping reform not only reduces costs but also signals India’s commitment to making healthcare affordable and inclusive—especially for patients coming from abroad.
Key Benefits for Medical Tourists
Lower Treatment Costs
Drugs, implants, and devices essential for treatments like cardiac surgery, cancer therapies, or organ transplants will now cost significantly less.
Affordable Health Insurance
International patients can now opt for local insurance policies in India without worrying about additional tax burdens, helping them manage costs during extended treatments.
Improved Access to Critical Care
Rare-disease treatments, often prohibitively expensive, will now be more affordable thanks to GST exemptions.
How Hospitals & Patients Save
To understand the impact, let’s compare pre- and post-GST scenarios:
- Before Reform: Cancer drug costing ₹1,00,000 had an additional 12% GST (₹12,000), totaling ₹1,12,000.
- After Reform: The same drug is now GST-free, saving ₹12,000 instantly.
For an international patient undergoing multiple treatments, these savings can add up to thousands of dollars, making India an even more attractive choice compared to other medical tourism destinations.
Opportunity
At HOSPIDIwe recognize the importance of these reforms for international patients. As a leading medical tourism facilitator, we provide end-to-end support:
- Promoting Cost Savings: Guiding patients to hospitals and treatments where GST exemptions apply.
- Insurance Assistance: Helping patients access GST-free health insurance for added protection.
- Streamlined Billing: Transparent, GST-optimized billing systems that ensure patients only pay what’s necessary.
- Holistic Support: From visa assistance to post-treatment care, ensuring patients enjoy a stress-free experience.
Conclusion
The GST cuts of 2025 are a game-changer, positioning India not just as a healthcare provider, but as a global leader in affordable medical tourism. For international patients, the reforms mean more savings, better access to life-saving treatments, and the reassurance of insurance without hidden costs.
At HOSPIDIO, we are ready to guide international patients through this new healthcare landscape, ensuring they benefit from every advantage India’s medical system has to offer.
FAQs
The GST on 33 life-saving drugs, including cancer and are-disease medicines has been reduced to 0%
Yes. From September 22, 2025, life and health insurance premiums are exempt from GST, down from the earlier 18%.
The changes were announced by the GST Council and came into effect on September 22, 2025
International patients save significantly on medicines and medical devices, medical devices, and insurance costs, making India’s healthcare even more affordable.
Sasmita
Author
Sasmita is a Marketing Specialist at Hospidio, a leading medical travel company. With expertise in Google Ads, Facebook Ads, and SEO, she plays a pivotal role in driving international leads for healthcare services in India. In addition to her digital marketing prowess, Sasmita is passionate about creating informative and research-based content. She writes extensively about treatment options available in India, the leading hospitals, and the surgeons that provide specialized care. Her blog posts also explore into new medical technologies and breakthroughs in the healthcare field, with the aim of educating international patients on the benefits of traveling to India for medical treatment.
Guneet Bindra
Reviewer
Guneet Bhatia is the Founder of HOSPIDIO and an accomplished content reviewer with extensive experience in medical content development, instructional design, and blogging. Passionate about creating impactful content, she excels in ensuring accuracy and clarity in every piece. Guneet enjoys engaging in meaningful conversations with people from diverse ethnic and cultural backgrounds, enriching her perspective. When she's not working, she cherishes quality time with her family, enjoys good music, and loves brainstorming innovative ideas with her team.