Reduction in MRP of Three Anti-Cancer Drugs Due to Custom Duty Exemption and Lower GST

📅 Date: October 29, 2024
📂 Categories: #GST #PharmaNews
⌛ Read Time: 4 Min

The Ministry of Chemicals and Fertilizers announced that the National Pharmaceutical Pricing Authority (NPPA) issued an office memorandum on October 28, 2024, directing a reduction in Maximum Retail Price (MRP) for three anti-cancer drugs: Trastuzumab, Osimertinib, and Durvalumab.

Key Points:

Custom Duty Exemption: As per the Union Budget 2024-25, these drugs were exempted from customs duty, with the Department of Revenue issuing Notification 30/2024 dated July 23, 2024, setting custom duty at nil.

Reduced GST Rates: Following Notification No. 05/2024 dated October 8, 2024, the GST on these drugs was lowered from 12% to 5%, effective October 10, 2024.

MRP Adjustment: NPPA’s directive mandates manufacturers to lower MRP and reflect the benefits of reduced taxes in the market, ensuring these savings reach consumers.

Compliance:

Manufacturers must release an updated or supplementary price list to dealers, State Drug Controllers, and the Government, and report price changes to NPPA through Form-II/Form V.

AntiCancerDrugs #MRPReduction #HealthcareNews #CustomDutyExemption #GSTUpdate