In a response to a Rajya Sabha question regarding an alleged increase in GST rates on essential drugs, the Ministry of Finance provided clarification. The Minister of State, Shri Pankaj Chaudhary, stated that GST rates and exemptions are determined based on the recommendations of the GST Council, a constitutional body with representation from both the Union and State/UT governments. He confirmed that there has been no upward revision in GST rates for any drugs or medicines since April 2025. Consequently, the questions regarding the resulting retail price increase and any anti-profiteering audits were deemed not applicable, as the premise of the initial query was incorrect. This response clarifies the government's position on GST for medicines and indicates that no changes have been implemented during the specified period.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UNSTARRED QUESTION NO-275
ANSWERED ON – 22.07.2025

HIGH-GST LIFESAVERS DRUGS

275 DR. SASMIT PATRA:

Will the Minister of Finance be pleased to state:

a. which essential drug Stock Keeping Units (SKUs) moved to elevated GST slabs since April 2025;

b. the per unit retail price increase in drugs due to these reclassifications have caused; and

c. which anti-profiteering audits/penalties are underway?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

a. GST rates and exemptions are prescribed on the recommendations of the GST Council which is a constitutional body comprising of members from Union and State/UT governments. There has been no upward revision in GST rates for any drugs or medicines since April 2025.

b. and (c) Does not arise in view of reply to part (a) above.

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