Industry leaders hail GST Reduction on Cancer Drugs to 5%

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, has expressed support for the GST Council’s decision to reduce the Goods and Services Tax (GST) on cancer drugs to 5 per cent. Jain emphasised the importance of this move in addressing the growing burden of chronic diseases in India.

“We welcome the GST Council’s decision to lower GST on cancer drugs to 5 per cent. With the increasing burden of chronic diseases in India, this is a move toward making life-saving drugs accessible and improving health outcomes,” said Jain.

He further noted that this reduction follows the recent exemption of customs duty on cancer drug imports, a measure announced in the budget. “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,” Jain added.

“The GST Council’s decision to reduce the GST on cancer drugs from 12 per cent to 5 per cent is a significant step towards making cancer treatment more affordable and accessible for patients. This follows the recent budget announcement that exempted these drugs from customs duty, marking a positive step forward. The high cost of cancer medications has been a major hurdle for many patients. The move is aligned with our mission to ensure that every patient has access to world-class cancer care without the burden of high costs. It will help reduce the financial burden on cancer patients and their families, especially those undergoing treatment with expensive treatments like Trastuzumab, Pembrolizumab, and Durvalumab.”

 Dr Manisha Karmarkar, CEO, DPU Super Specialty Hospital, Pimpri, Pune on reduction of GST rate on cancer drugs: 

“The reduction of the GST rate on cancer drugs to 5 per cent is a much-needed and revered move announced by the council that will ease the burden of this life-threatening disease. Currently, cancer is among the top 5 causes of death in India, and a considerable share of these cases are owing to the inability to bear medical expenses. Furthermore, India recorded approximately 1.49 million cases in 2023 and as per estimates, a 12.8 per cent increase in annual cancer cases by 2025 is projected. This underlines the need to build a robust ecosystem to fight the inflating cancer load, and the move to reduce the GST rate is a coveted step in that direction.”

Anil Matai, Director General, OPPI :

“We commend the Government’s decision to reduce the GST rate on certain cancer drugs from 12% to 5%. This reduction marks a pivotal step in making life-saving treatments more affordable and accessible. We at the Organisation of Pharmaceutical Producers of India (OPPI) applaud this decision by the GST Council. To further improve patient outcomes and ensure comprehensive access, we recommend extending such exemptions not only to all cancer medications but also to all rare diseases medications. Such initiatives will make a significant difference in the lives of patients across India, enabling better treatment and improving overall healthcare outcomes.”