Customs duty on 3 anti-cancer drugs reduced to Nil; GST rates also reduced on drugs from 12 pc to 5 pc

The National Pharmaceutical Pricing Authority (NPPA) has issued an Office Memorandum directing the companies to reduce MRP on three anti-cancer drugs- Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

This has been done following the reduction in GST rates and exemption from customs duties so as to pass on the benefit of reduced taxes and duties to the consumers and to file Form II/V furnishing information about changes in prices.

Earlier, the Department of Revenue, Ministry of Finance had reduced the customs duty to Nil in respect of three anti-cancer drugs - Trastuzumab Deruxtecan, Osimertinib, and Durvalumab in July 2024. Further, the GST rates were also reduced on these anti-cancer drugs from 12% to 5% in October 2024.

Officials sources,  the Drugs (Prices Control) Order, 2013 (DPCO, 2013),  the Maximum Retail Price (MRP) of drugs/formulations is inclusive of taxes and duties, as applicable.

As per information received from Ministry of Health & Family Welfare (MoHFW), on 17.11.2022, the Drugs Rules, 1945 were amended vide G.S.R. 823 (E) w.e.f. 01.08.2023 providing that the manufacturers of top 300 brands of drug formulation products, as specified in Schedule H2, shall print or affix a Bar Code or Quick Response Code on its primary packaging label or, in case of inadequate space in the primary package label, on the secondary package label that store various data or information legible with the software application to facilitate authentication.

“The downward revision on account of BCD becoming Nil shall be implemented when the stocks benefitting from BCD relief are released for commercial sales in the market,” informed Union Minister of State for Chemicals and Fertilizers Anupriya Patel in Lok Sabha.