AP to Save Rs 1K Crore on Health Following Reduction in GST: Minister
Centre cuts GST from 12% to 5%, easing burden on patients and health schemes
Vijayawada: Andhra Pradesh government will save almost Rs 1,000 crore on the public health sector following the central government’s rationalisation of Goods and Services Tax (GST) rates.
Providing details, Health Minister Satya Kumar Yadav pointed out on Wednesday that the centre used to levy 12 per cent and 5 per cent GST on several drugs up to September 21.
Following the reduction in GST rates from September 22, nearly 99 per cent of drugs, which attracted a GST of 12 per cent, have now come within the 5 per cent GST bracket. This has led to a saving of 7 per cent on GST.
Moreover, the central government has lifted the 12 per cent GST on certain drugs, which will be a major relief for patients using such drugs.
The Health Minister said AP has 35,000 medical shops and 5,000 wholesale traders. Their sales of drugs and surgical utilities touched Rs 11,250 crore in 2024-25 in the state. Nearly Rs 1,350 crore had been levied as tax. Following reduction in GST, the relief available to people will be worth Rs 703 crore.
With regard to NTR Vaidya Seva Trust, Satya Kumar said nearly Rs 4,077 crore worth pre-authorisations had been given in 2024–25, wherein Rs 2,308 crore went for medication and consumables. There will be a saving of Rs 203.85 crore in this sector following a reduction in the GST, he added.
