In a significant development for cancer patients across India, the GST Council at its 54th meeting held in New Delhi on September 9 decided to slash the GST rate from 12 per cent to 5 per cent on key cancer medications, including Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. The three drugs — Trastuzumab deruxtecan are used for breast cancer, Osimertinib for lung cancer drug for EGFR mutation, and Durvalumab for lung and biliary tract cancers. Deruxtecan drug can be used in all cancers with Her2 positive gene. Earlier, the Central government had exempted customs duty on these three cancer drugs in the Union Budget 2024-25.
Cancer remains one of the top five causes of death in India, with many patients struggling to afford the necessary treatment. In 2023, India recorded approximately 1.49 million cancer cases, and estimates suggest a 12.8 per cent rise in annual cases by 2025. Among an estimated 1.49 million newly diagnosed cancer patients in India each year, nearly 2,75,000 patients are diagnosed with breast, ovarian, prostate or pancreatic cancers.
Cancer treatment can get expensive due to the long duration of treatment and the high cost of drugs, especially in cases where the drug needs to be imported as in the case of immunotherapy or targeted therapy. Cancer was reported to account for the highest out of pocket expenditure among all diseases, a substantial portion of which is spent on drugs. In fact, the majority of households resort to borrowing and contributions (from friends and relatives) respectively for cancer hospitalisation. Affordability of cancer medicines is therefore the most important determinant for equitable cancer care in the country.
With the incidence of cancers rising significantly, the reduction of the GST rate on key cancer medications is a welcome move and further will increase the confidence of patients in the treatment system. With the increasing burden of chronic diseases in India, this is a move toward making life-saving drugs accessible and improving health outcomes. This much-needed GST cut can also improve access to advanced cancer treatments, reduce the financial burden on patients and their families, and potentially improve treatment outcomes by allowing more patients to benefit from these drugs.
The GST Council’s reduction in tax rates on essential cancer drugs is a crucial step and will make life-saving medicines more affordable and accessible to patients. This move marks a crucial step in making life-saving treatments more affordable for patients battling cancer. The slash in GST will allow more patients in India to receive the standard care. With the new treatment coming in, reducing the side effects of therapy and improved responses, this will improve the outcome in the patient. The reduction of the GST rate on cancer drugs to 5 per cent will help alleviate the financial strain of this life-threatening disease.
