The GST Council in 56th meeting held in New Delhi on 03.09.2025 introduced significant reforms aimed at making healthcare more affordable and accessible to common man. The changes reflect a citizen-centric approach, with a strong emphasis on public health and the pharmaceutical sector and to make insurance services accessible to all. The changes will be effective from 22.09.2025. The changes and its impact from the lens of the pharma and medical devices industry and insurance industry is captured below.

The 56th meeting of the GST Council was held in New Delhi on 3rd September 2025, chaired by the Union Minister for Finance and Corporate Affairs. The Council recommended wide-ranging rationalisation of GST rates across goods and services, with an emphasis on correcting duty structures, simplifying compliance, and addressing sector-specific issues.

The 56th GST Council meeting held on 3rd September 2025 introduced a series of rate rationalisations affecting the logistics sector. With the 12% and 28% GST rate slabs going away, there has been an impact on not only transportation services (public transportation and transportation of goods, where the earlier optional rate of 12% with ITC has moved to 18% with ITC), but has also impacted vehicle taxation, which will not only reduce procurement cost but also help offer services at better rates for transportation / rental services and provide flexibility in business models. The revised rates will come into effect from 22nd September 2025.