The GST Council, led by Finance Minister Nirmala Sitharaman, has reduced the Goods and Services Tax (GST) on three key cancer drugs from 12% to 5%. The drugs—trastuzumab deruxtecan, osimertinib, and durvalumab—are advanced therapies used in treating various cancers, including breast cancer and lung cancer. Manufactured by British-Swedish pharmaceutical giant AstraZeneca, these drugs are crucial for patients battling life-threatening diseases.
Trastuzumab deruxtecan is primarily used to treat HER2-positive breast cancer that has metastasized. Osimertinib targets non-small cell lung cancer (NSCLC) with specific gene mutations, while durvalumab is an immunotherapy drug used to treat NSCLC and bladder cancer by helping the immune system target cancer cells.
The GST reduction is expected to bring some relief to patients as the drug prices may fall by up to 7%, depending on how manufacturers and distributors pass the tax savings along the supply chain. The exact decrease in retail prices may vary due to the complex nature of drug pricing and distribution. Experts believe that the decision will slightly ease the financial burden on cancer patients in India, where cancer treatment often poses a significant economic challenge.
Dr. Amit Upadhyay, Senior Consultant of Hematology Oncology at PSRI Hospital, New Delhi, estimates that the GST cut could result in savings of Rs 15,000 to Rs 20,000 per month for patients undergoing certain therapies. He also urged the government to extend the tax reduction to other expensive cancer drugs like pembrolizumab and nivolumab, which are used in treating various cancers, including breast and lung cancers.
Dr. Aditya Sarin, Senior Consultant of Medical Oncology at Sir Ganga Ram Hospital, noted that the reduction in drug prices could significantly lower out-of-pocket expenses for patients, making cancer treatment more accessible to those without insurance or with limited financial resources. He emphasized that affordable access to such medications is crucial, particularly for low-income families and those living in economically disadvantaged regions.
This GST reduction follows the council’s earlier move in July 2023 to cut taxes on Dinutuximab, a drug used to treat neuroblastoma, a rare cancer in children. The current tax cuts also align with the recommendations made by a 2022 Parliamentary panel that called for the complete removal of GST on cancer drugs, highlighting the financial strain that cancer treatment places on Indian families.
Experts believe that while these steps are important, a broader reduction in taxes and improved access to cancer drugs are needed to further alleviate the burden on patients across India.
