GST Council’s decision to reduce the GST on cancer and essential drugs

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GST Council's decision to reduce the GST on cancer and essential drugs

The Indian Medical Association (IMA) called the Goods and Services Tax (GST) Council’s decision to lower the GST on a number of cancer-related and other necessary medications a “commendable step” on Monday.

The IMA said in a statement that the action will help millions of patients nationwide access and afford healthcare.

According to the IMA, “the government’s commitment to bolstering public health infrastructure and supporting those battling serious medical conditions like cancer, chronic diseases, and life-threatening infections is reflected in the reduction of GST on critical drugs.”

As part of its larger tax reforms, the government is attempting to lower the GST on a number of necessary and life-saving medications.

The proposed adjustments include reducing GST rates from 12% to 5%, and in certain situations, to zero percent, for cancer medications and other essential therapies.

Exemption is also being considered for medications used to treat uncommon disorders.

The goal of the action is to make expensive treatments, which already put a significant financial burden on patients and their families, more broadly available and reasonably priced.

Notably, the association urged the government and GST Council to further ease the burden on patients and healthcare providers by allowing GST exemption on essential and life-saving medications, such as insulin and oral diabetes medications, as well as medications used for immunotherapy, chemotherapy, and targeted therapies.

Additionally, it called for the GST exemption of antihypertensives, heart medications, intravenous immunoglobulin, medications for hematological conditions such as hemophilia and myelodysplastic syndromes, and medications for chronic kidney disease, collagen vascular diseases, thyroid disorders, asthma, COPD, osteoporosis, and serious infections.

Additionally, in order to “significantly lower operational costs for hospitals and clinics, making treatment more affordable,” the IMA urged for a drop in the GST on medical equipment.

In order to “ease the financial burden on individuals and families, particularly in times of medical emergencies,” IMA also strongly advocated for the “complete removal of GST on hospital beds to ensure affordability of hospitalization” and the “exemption of GST on health insurance premiums.”

It claimed that this would enhance access to healthcare and promote broader use of health insurance.

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