GST on Cancer Drugs Slashed to 5% from 12%

Here’s news that’s set to make a real difference— the GST Council has just announced a major cut in the Goods and Services Tax (GST) on essential cancer drugs, bringing it down from 12% to 5% from September 13, 2024. This decision came out of the 54th GST Council meeting in New Delhi, with Union Finance Minister Nirmala Sitharaman at the helm. For cancer patients across India, this means one thing: some much-needed financial relief is on the way.

A Lifeline for Patients’ Wallets

This isn’t the first time the government has taken steps to ease the cost of cancer treatment. Earlier this year, the Union Budget 2024 scrapped customs duties on three major cancer drugs—Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. Now, with this fresh GST cut, the government’s sending a clear message: cancer care shouldn’t be inaccessible.

For countless families struggling with medical bills, this reduction couldn’t have come at a better time. It’s another step in the right direction following last year’s GST exemption on Dinutuximab, an expensive drug used to treat neuroblastoma. It’s clear the government is serious about making healthcare more affordable for those who need it most.

Indian Pharma Surge on GST Cut

Shares of Indian pharmaceutical companies rose following the GST Council’s decision to cut taxes on cancer drugs from 12% to 5%. Divi’s Laboratories, Suven Pharma, and Piramal Pharma each climbed over 3%, with Suven Pharma, Ajanta Pharma, Divi’s Laboratories, Laurus Labs, and Syngene International reaching new 52-week highs. AstraZeneca Pharma saw a boost as well, with its shares jumping over 4% to Rs.7,089.95, driven by its substantial revenue from oncology drugs.

Is More Relief on the Horizon?

And the good news might not stop here. The GST Council is also eyeing a possible reduction in GST on life and health insurance premiums, which are currently taxed at 18%. A special group has been set up to explore this option, with recommendations expected by October. If all goes well, the next GST Council meeting in November could bring even more relief to the healthcare budget.

Conclusion: All in all, by cutting GST on cancer drugs, the government is taking a step toward easing the financial burden on cancer patients and their families. And with more potential changes on the horizon, it looks like this could be just the beginning of broader efforts to make healthcare more affordable for all in the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.