In a welcome move, Union Finance Minister Mrs Nirmala Sitharaman announced the slashing of GST on cancer drugs to 5% from 12% earlier. The decision taken during the 54th GST Meeting of the GST Council has been hailed as a bold move for affordable healthcare by industry experts.
The announcement was made during a press briefing in New Delhi after the GST Council approved the recommendation to slash GST on some cancer drugs was approved by the council. Mr Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, applauded Mrs Sitharaman’s statement. He said that given the increasing burden of chronic diseases in India, making life-saving drugs accessible and improving health outcomes are appreciated.
It’s recommended to get GST registration consulting support and fulfil all the compliance requirements.
Revolutionary Move on Cancer Drugs is Welcomed by All
Mr Sudarshan Jain further lauded her efforts to exempt custom duty on the import of cancer drugs in the recently presented Union Budget as a step in the right direction.
Other significant attendees of this meeting include Union Minister of State for Finance Shri Pankaj Chaudhary, the Chief Ministers of Goa and Meghalaya, and the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana. Finance Ministers of States and UTs (with legislature) and other senior officers of the Ministry of Finance and States/ UTs also marked their presence.
Cancer continues to be a significant health concern in India, especially when its cases have shown a steady rise in the last ten years. In an alarming projection, it is believed that one in every nine people in India may develop cancer at some point in their lives.
Have a Look at the Stats
While there is no conclusive data, the state-wise reports of new cancer cases in India for 2023 provide a clear understanding of the distressing situation across the country. The Indian states that reported the highest number of new cancer cases in 2023 include Uttar Pradesh (2.10 lakh), Maharashtra (1.21 lakh), West Bengal (1.13 lakh), Bihar (1 lakh), and Tamil Nadu (82,000).
Cancer continues to affect different organs in India, with specific types being more dominant than others. According to the statistics available for 2023, the most common forms of cancer in the country include lung cancer, colorectal cancer, breast cancer, pancreatic cancer, and stomach cancer.
Cancer poses a significant challenge to the country’s healthcare system, demanding increased awareness, early detection, and effective treatment options nationwide. Cancer treatments in India are expensive. In such a scenario, slashing the GST on certain cancer drugs is a welcome move and a bold step towards affordable treatment.
To get GST registration support and meet other compliance needs, visit Corpbiz.
Frequently Asked Questions
What is the GST rate for anti-cancer drugs?
Anti-cancer drugs in India are subject to a 12% GST rate. However, the recently concluded 54th GST Council Meeting decided to reduce the GST from 12% to 5% on some medicines.
Is cancer treatment tax-free?
Section 80DDB of the Income Tax Act in India offers deductions on expenses related to treating particular serious diseases, including cancer, AIDS, Parkinson's disease, dementia, and chronic kidney failure.
What is the subsidy for cancer medicine in India?
The Health Minister's Cancer Patient Fund (HMCPF) under the Rashtriya Arogya Nidhi (RAN) offers assistance of up to INR 2 lakhs. However, this can be availed by patients living below the poverty line who are receiving cancer treatment at one of the 27 Regional Cancer Centers (RCCs) across the country.
Is cancer covered under section 80DDB of the Income Tax Act?
Yes, Section 80DDB offers coverage for malignant cancer conditions. However, the disease must be diagnosed by an oncologist with a Doctorate of Medicine (D.M.) or an equivalent degree in Oncology.
Why are cancer drugs costly?
Several factors drive up the cost of cancer drugs in India. The high expense of drug development is a significant factor owing to the complex process of extensive trials and research before hitting the market for sales. This process requires heavy investments in terms of time and money.
