GST Council Meeting: In a major relief for cancer patients across India, the GST Council has announced a reduction in tax rates on essential cancer medications. During its 54th meeting held in New Delhi, the Council decided to cut the GST on key cancer drugs, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab, from 12% to 5%. This decision marks a significant step in making life-saving treatments more affordable for cancer patients.
Previous Measures and Recommendations
This move follows a series of government efforts to reduce the financial strain of cancer treatment. In July 2023, the Council exempted the drug Dinutuximab, used for treating neuroblastoma (a rare cancer affecting nerve cells), from GST. With a price of approximately Rs 36 lakh, the exemption was crucial for families previously importing the drug for personal use.
The GST reduction also aligns with recommendations made by a Parliamentary panel in 2022. The panel had called for the complete waiving of GST on cancer medications due to the high costs associated with cancer treatment in India. The panel further suggested that cancer be recognized as a notifiable disease, which would require mandatory reporting to the government, reflecting the severity of the condition.
Government’s Commitment to Reducing Cancer Care Costs
In addition to the GST reduction, the government has demonstrated its commitment to lowering the cost of cancer care through other measures. In the Union Budget 2024, Finance Minister Nirmala Sitharaman exempted three crucial cancer treatment medicines from basic customs duty. This followed the March 2023 exemption of Keytruda, a drug used for treating cervical cancer, from customs duties.
Industry Response
Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, welcomed the Council’s decision, stating, “We welcome the GST Council’s decision to lower GST on cancer drugs to 5%. With the increasing burden of chronic diseases in India, this is a move toward making life-saving drugs accessible and improving health outcomes. This is further to the import exemption of customs duty on cancer drugs announced during the recent budget and a step in the right direction.”
The reduction in GST is seen as part of a larger effort by the government to alleviate the financial burden on cancer patients and improve access to essential medicines.
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