What is the new GST status for cancer drugs in India?

India has exempted 33 life-saving cancer drugs from GST, reducing their tax burden to zero, and three critical drugs for rare diseases and cancer now have a 0% GST.

How are cancer treatments being made more affordable in India?

Cancer treatments are becoming more affordable due to GST exemption on 33 drugs, a reduction in custom duty on 17 cancer drugs, and lower GST on critical rare disease and cancer drugs.

What is the new tax rate for tobacco products in India?

Tobacco products in India now face a 40% tax rate, which is the highest for any class of goods, aimed at curbing consumption and supporting public health.

Home / Health / Cancer Drug Costs Slashed: GST Exemption Aids Patients

Cancer Drug Costs Slashed: GST Exemption Aids Patients

5 Feb

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Summary

GST fully exempts 33 lifesaving cancer drugs, reducing patient expenses.
Custom duty on 17 cancer drugs reduced to improve treatment affordability.
Tobacco products now face the highest tax rate of 40% to curb consumption.

Cancer Drug Costs Slashed: GST Exemption Aids Patients

India has implemented substantial tax reforms to bolster public health, focusing on making cancer treatment more affordable. The Goods and Services Tax (GST) council has recommended a complete exemption for 33 life-saving cancer drugs, shifting their tax burden from 12% to zero. Furthermore, three critical drugs for rare diseases and cancer now carry a 0% GST, down from 5%.

In a related move, custom duties on 17 cancer drugs were reduced in the latest budget, directly easing the financial strain on patients. These measures, championed by oncologists from AIIMS, aim to make healthcare more accessible and reduce out-of-pocket expenses.

The country has also levied a 40% tax on tobacco products, the highest for any goods category. This significant increase, effective from February 1, 2026, is intended to curb consumption, prevent premature mortality, and avert catastrophic health expenditures.