Cancer Patients Benefit as GST on Medications Slashed

10 Sep 2024 , 12:22 PM

Shares of pharmaceutical businesses that manufacture anti-cancer treatments rose 4.4% after Finance Minister Nirmala Sitharaman said at the 54th GST council meeting that the Goods and Services Tax (GST) on cancer drugs would be cut to 5% from 12%.

In response to the announcement, pharma stocks such as Astrazeneca Pharma climbed 4.4% to a day high of Rs 7,069 on the BSE, while Fortis Healthcare shares rose 3% to Rs 563.55, and Natco Pharma shares rose 2.5% to Rs 1,585.

The plan to reduce the GST on these drugs aims to significantly reduce the overall cost of cancer treatment.

The GST Council has also exempted foreign airline businesses from importing services from connected persons or places outside of India, as well as certified flying training courses.

It decreased GST rates on certain cancer medications, helicopter flights (barring charters), and namkeens or savoury snacks.

It is forming two groups of ministers: one to investigate GST on life and health insurance premiums, and another to look at the compensation cess. Members also examined the status report on rate rationalisation by a ministerial group, as well as the taxation of online gambling.

This was the GST Council’s first meeting after the creation of the new administration at the Centre in June.

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