No Goods and Service Tax Levy on Gene Therapy, Exempted with Immediate Effect

New Delhi: In a significant move, the Central Board of Indirect Taxes and Customs (CBIC) announced that no Goods and Service Tax (GST) will be levied on gene therapy, effective immediately.

The CBIC notified this change on [Date] citing the insertion of "ANew Entry 105A" in Notification No. 02/2017-Central Tax (Rate), which fully exempts Gene Therapy from GST. This notification, with an immediate effect, states that patients undergoing CAR-T cell therapy, a groundbreaking form of cell-based gene therapy, can now access this life-saving treatment at affordable prices.

This move is expected to have a profound impact on the lives of patients battling rare and life-threatening diseases such as leukaemias, lymphomas, and multiple myeloma. Gene therapy has emerged as a critical treatment option for these conditions, providing hope to those who had been struggling with expensive healthcare costs.

Following this announcement, the government is also considering proposing duty cuts in the Union budget 2025 for medicines imported to treat cancer and rare diseases. The proposal aims to provide relief for patients burdened by rising drug prices.

The central government's earlier move in March 2023 fully exempting all drugs and foods for special medical purposes imported for personal use from basic customs duty is expected to have a positive ripple effect on this recent notification.