The Union Finance Minister (FM), Nirmala Sitharaman, on 9th of September, 2024, conducted the 54th GST Council meeting under her chairmanship. The meeting was composed of state finance ministers.
In the press meeting held after the GST Council Meet, the Finance Minister announced that the GST rate on cancer drugs will be slashed from 12% to 5%, a promising, commendable move. It should be noted that the rate will be reduced prospectively and not retrospectively. Additionally, a group of ministers (GoM) has also been set up to suggest GST rate reduction on medical health insurance, which shall be reported before the end of October 2024.
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This significant drop of GST rate in cancer drugs is definitely a welcome move from the Government’s side, and its implementation is expected to yield positive results in terms of reducing the cost of cancer treatment in the country.
It is also notable that in the Union Budget presented on July 23rd of 2024, the FM had previously announced the exemption of three cancer medicines from customs duty, namely Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.
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According to the latest report by the World Health Organisation (WHO), the country recorded 14 lakhs new cancer patients in 2022 alone, with 9 lakhs deaths. Among these cases,, breast cancer, oral cancer and cervical cancer ranked the highest, constituting 32% of the total cases.
Approximately, one in every nine people in India is expected to be diagnosed with cancer during their lifetime.
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With this context in hand, steps like the aforementioned slash in the GST rate and exemption from customs duty for the medicines are headed in the right direction. Such moves are expected to noticeably relieve the financial burdens of cancer stricken individuals in the country.
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