The Union Finance Minister Nirmala Sitaraman presided over the 50th meeting of the GST Council on 11th July 2023 at Vigyan Bhawan in New Delhi including Revenue Secretary, CBIC chairman.
The Finance minister recommended to exempt the Cancer related imported medicines and foods for special medical that are used for special rare diseases from GST.
The exemption under the purview of the CGST Act applies to imported personal-use medicine Dinutuximab (Quarziba). These medications typically cost around 36 lakhs, making it challenging for individuals suffering from such diseases to afford them.
Last year, the parliament made a recommendation to exempt GST (Goods and Services Tax) on cancer drugs. They highlighted the high cost of cancer treatment in our country and suggested that it should be considered a notifiable disease.
Moreover, it has been decided to exempt IGST on medicines and Food for Special Medical Purposes (FSMP) used in the treatment of rare diseases enlisted under the National Policy for Rare Diseases, 2021 when imported for personal use subject to existing conditions.
Likewise, the IGST (Integrated Goods and Services Tax) exemption is also being expanded to FSMP (Food for Special Medical Purposes) when it is imported by Center of Excellence for Rare Diseases or any person or institution recommended by any of the listed Centers of Excellence.
Currently, if individuals import cancer medicine for personal use, they are subject to either a 5% or 12% Integrated Goods and Services Tax.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
