In order to expand the assistance in life threatening effect, the GST council reduced the tax rate on cancer medicines by reducing in tax rates on essential cancer drugs.

Being present at its 54th meeting held in New Delhi, the Council decided to cut short the GST rate from 12% to 5% on key cancer medications, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. This move marks a crucial step in making life-saving treatments more affordable for patients battling cancer.

This decision was taken keeping in mind a series of measures aimed at alleviating the financial burden of cancer treatment. During July 2023, the GST council has decided to offer  a notable concession by exempting Dinutuximab, a drug used for treating neuroblastoma, from GST.

Neuroblastoma is a rare cancer that affects nerve cells. Dinutuximab, which costs around 36 lakh, was previously imported by individuals for personal use, making it a significant financial strain on families.

The decision of reducing GST burden on cancer drug aligns with earlier recommendations made by a Parliamentary panel in 2022. The panel directed to slash the complete waiving of GST on cancer medications, and highlighted the exorbitant costs associated with cancer treatment in India.

The parliamentary panel also recommended that cancer be recognized as a modifiable disease, which would require its reporting to the government, reflecting the severity and prevalence of cancer-related health issues.

The government's dedication to mitigating the expense of cancer treatment was highlighted when Finance Minister Nirmala Sitharaman revealed her Union Budget 2024 plan, which includes waiving basic customs duty for three significant medications utilized in cancer therapy. This initiative is a component of an extensive approach geared towards lessening patients' financial strain and increasing access to vital pharmaceuticals.

Moreover, during March 2023, the government has taken decision to exempt the custms duty from Keytruda, which is used for treating cervical cancer.

Talking about the noble decision of the government Sudarshan Jain, Secretary General of Indian Pharmaceutical Alliance mentioned, “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 recent budget and a step in the right direction.”

D. S. Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC) mentioned, “The GST Council's decision to reduce the GST on cancer drugs from 12% to 5% 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.”