The Ministry of Finance has notified the GST rate reduction on cancer drugs from 12% to 5%.
In exercise of the powers conferred by section 9 (1) and section 15 (5) of the Central Goods and Services Tax Act, 2017, the Central Government, on the recommendations of the 54th GST Council Meet, amended the notification No. 1/2017-Central Tax.
The government notified the reduced rates of 5% GST on the life saving drugs namely Trastuzumab, Deruxtecan, Osimertinib and Durvalumab.
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Uses Of Drugs
Trastuzumab deruxtecan, sold under the brand name Enhertu, is an antibody-drug conjugate consisting of the humanised monoclonal antibody trastuzumab covalently linked to the topoisomerase I inhibitor deruxtecan. It is licensed for the treatment of breast cancer or gastric or gastroesophageal adenocarcinoma.
Osimertinib, sold under the brand name Tagrisso, is a medication used to treat non-small-cell lung carcinomas with specific mutations. It is a third-generation epidermal growth factor receptor tyrosine kinase inhibitor.
Durvalumab is used alone or with other drugs to treat adults with certain types of biliary tract cancer (including bile duct cancer and gallbladder cancer), endometrial cancer, hepatocellular carcinoma (a type of liver cancer), non-small cell lung cancer, and small cell lung cancer.
Impact of the Reduced GST Rate Reduction On Cancer Drugs
The rate reduction in respect of cancer drugs is a crucial step in making life-saving treatments more affordable for patients battling cancer.
The GST reduction in respect of cancer drugs aligns with earlier recommendations made by a Parliamentary panel in 2022. The Parliamentary panel has emphasis for the complete waiving of GST on cancer curing drugs, highlighting the exorbitant costs associated with cancer treatment in India.
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The Parliamentary panel suggested that cancer be recognised as a notifiable disease, which would require its reporting to the government, reflecting the severity and prevalence of cancer-related health issues.
Effective Date From Which GST Rate Reduction On Cancer Drugs Will Be Applicable
The notification reducing the GST on cancer drugs will be effective from 10 October 2024.
Notification Details
Notification No. 05/2024-Central Tax
Date: 08/10/2024
