Reduced Custom Duty to nil and GST to 5% on three anti-cancer medicines, effective October 10, 2024, requiring price revisions by manufacturers

The National Pharmaceutical Pricing Authority (“NPPA”) has issued a Notification informing that the Department of Revenue, Government of India, has announced a reduction in Custom Duty to nil on three anti-cancer medicines: Trastuzumab Deruxtecan, Osimertinib, and Durvalumab. Additionally, the Goods and Services Tax (GST) on these drugs has been lowered from 12% to 5%, effective from October 10, 2024. Consequently, all manufacturers and marketing companies of the specified drugs are mandated to revise the MRP accordingly. Information about the revision must be submitted through Form-II/ Form V and issue a price list or supplementary price list to the dealers, State Drugs Controllers and the Government indicating changes.

Background:

According to the Drug Price Control Order (DPCO) of 2013, the Maximum Retail Price (MRP) of pharmaceutical products must include applicable taxes and duties. Therefore, any reduction in duties and taxes should be reflected in the MRP, ensuring consumers benefit from the price changes.

A copy of the Notification is linked below for your ease of reference.

Source: National Pharmaceutical Pricing Authority