India cuts GST on three cancer drugs from 12% to 5%

What changed in detail

At its 54th meeting on 9 September 2024 the GST Council recommended reducing the GST rate on three cancer drugs, Trastuzumab Deruxtecan, Osimertinib and Durvalumab, from 12% to 5%. The Council’s press release lists the cut under “Changes/Clarifications in GST Tax Rates”, in the goods section.

The Central Government gave effect to the recommendation in Notification No. 05/2024-Central Tax (Rate) dated 8 October 2024, effective 10 October 2024. From that date the three drugs carry 5% GST (2.5% CGST plus 2.5% SGST, or 5% IGST on inter-state supplies) instead of 12%.

The cut covers the three named molecules only. Other medicines in the 12% schedule kept their rate.

What it means

The cut is still in force. It was a narrow, product-specific change: billing systems had to move the three molecules into the 5% schedule while the rest of the 12% schedule stayed as it was.

A year later the 56th GST Council’s rate rationalisation moved most medicines that were still at 12% down to 5%, and 33 lifesaving drugs to nil, from 22 September 2025. These three drugs were already at 5%, so that overhaul did not change their rate. For drugs taken off the 12% schedule in 2025, the September 2025 change is the one that applies.