Business

Government’s GST Reductions Bring Critical Medicines Into Affordable Reach

Under the new tax structure, a pack of asciminib—used for treating leukemia—will now cost Rs 10.5 lakhs instead of Rs 11 lakhs, providing a saving of around Rs 25,000. Obinutuzumab, another crucial cancer therapy often paired with chemotherapy, will see a markdown exceeding Rs 40,000.

• By Newsdesk
• New Delhi
• Sep 10, 2025

Business

Thousands of patients battling serious illnesses in India are set to benefit from a dramatic policy shift: the government has substantially lowered or fully eliminated GST on a range of lifesaving drugs, bringing down treatment costs in meaningful ways.

Under the new tax structure, a pack of asciminib—used for treating leukemia—will now cost ₹10.5 lakhs instead of ₹11 lakhs, providing a saving of around ₹25,000. Obinutuzumab, another crucial cancer therapy often paired with chemotherapy, will see a markdown exceeding ₹40,000.

The GST relief is especially significant for patients with spinal muscular atrophy. Roche’s medication Everysdi (risdiplam), which was previously priced at ₹72 lakh annually (inclusive of 12% GST), will now be available at ₹64.29 lakh for individuals weighing 20 kg or more. Meanwhile, Novartis’ recently approved gene therapy, ZolegenSMA (onasemnogene abeparvovec), costing an estimated ₹14.96 crore in India based on the earlier GST-inclusive pricing, will now be exempt from GST as the company finalises the market price.

In total, 41 patented and often generically unavailable drugs—treating conditions ranging from multiple myeloma, lung and blood cancers, lymphoma, Gaucher and Pompe diseases to hemophilia—will now be more affordable under the revised GST policy.

Healthcare affordability is expected to improve especially for lower-income patients. With lower maximum retail prices (MRP) and potential support schemes, access to these medications may extend into underserved communities.

This sweeping tax reform marks a significant milestone in the government’s efforts to expand equitable access to high-cost treatments and support public health inclusivity.