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India's GST Overhaul Slashes Tax on Essentials, Boosts Healthcare

9/22/2025

Summary

Story summary

On September 22, 2025, the Indian government enacted major GST reforms, cutting rates on approximately 375 goods and services, including essential food and healthcare items.
The reforms introduced two GST slabs: 5% and 18%, lowering taxes on many items previously taxed at 12% and 28%.
Life-saving medicines, medical devices, and health insurance premiums are now GST-exempt to improve healthcare affordability.
Daily essentials like milk and bread experienced significant tax cuts, potentially saving families thousands each year.
Union Home Minister Amit Shah called the reforms a "trust-based tax system," aimed at boosting production and consumption.

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Story summary

On September 22, 2025, the Indian government enacted major GST reforms, cutting rates on approximately 375 goods and services, including essential food and healthcare items.
The reforms introduced two GST slabs: 5% and 18%, lowering taxes on many items previously taxed at 12% and 28%.
Life-saving medicines, medical devices, and health insurance premiums are now GST-exempt to improve healthcare affordability.
Daily essentials like milk and bread experienced significant tax cuts, potentially saving families thousands each year.
Union Home Minister Amit Shah called the reforms a "trust-based tax system," aimed at boosting production and consumption.