Customs duty exemption, GST rate cut to bring down retail prices of cancer drugs

The maximum retail prices (MRP) of three main drugs used in the treatment of cancer, viz, Trastuzumab, Osimertinib and Durvalumab, will come down on account of exemption from custom duty and a reduction in GST rates.

The National Pharmaceutical Pricing Authority (NPPA) has directed manufacturers of these drugs to reduce MRP on these drugs, in line with duty concessions, so as to ensure availability of these drugs at affordable prices.

The Union Budget 2024-25 had announced exemption of these three drugs for cancer treatment from customs duty. Subsequently, the revenue department issued a notification on 23 July 2024 announcing nil customs duty on these drugs.

Further, the revenue department, on 8 October 2024, issued a notification reducing the GST rates on these drugs from 12 per cent to 5 per cent with effect from 10 October 2024.

NPPA has directed manufacturers of these medicines to pass on the benefit of duty reduction to the consumers by bringing down retail prices.

They have been asked to issue revised price list or a supplementary price list to dealers, state drugs controllers, government and the NPPA indicating the change in prices to ensure that the price reduction is passed on to the consumer.