Astrazeneca, Natco Pharma shares rally 4% after GST cut on cancer drugs
In reaction to the update, pharma stocks like Astrazeneca Pharma surged 4.4% to its day’s high of Rs 7,069 on BSE while Fortis Healthcare shares went up by 3% to Rs 563.55 and those of Natco Pharma shot up 2.5% to Rs 1,585.
By Nishtha Awasthi, ETMarkets.com |
Agencies
Shares of Pharma companies manufacturing anti-cancer drugs rallied up to 4.4% as the Finance Minister Nirmala Sitharaman in the 54th GST council meeting announced that the Goods and Services Tax (GST) on cancer drugs will be reduced to 5% from an earlier 12%.
In reaction to the update, pharma stocks like Astrazeneca Pharma surged 4.4% to its day’s high of Rs 7,069 on BSE while Fortis Healthcare shares went up by 3% to Rs 563.55 and those of Natco Pharma shot up 2.5% to Rs 1,585.
The move of reducing the GST on these drugs is aimed at further reducing the overall cost of cancer treatment.
The GST Council has also exempted the import of services by foreign airline companies from related persons or any of their establishments outside India as well as approved flight training courses.
It reduced GST rates on certain cancer drugs and helicopter rides barring charters as well as namkeens or savoury snacks.
Also read: These 10 stocks will trade ex-dividend from tomorrow. Do you own any?
This was the first meeting of the GST Council after the formation of the new government at the Centre in June.
The GST Council also decided to set up a GoM to decide on the roadmap for the compensation cess beyond March 2026 and will take a call on the additional Rs 40,000 crore collected after adjusting for back-to-back loans taken by the states and interest.
On a year-to-date basis, the shares of Astrazeneca and Natco Pharma have increased by 58.5% and 78.7% respectively, while the shares of Fortis Healthcare have gained 65% in the same time period.
In reaction to the update, pharma stocks like Astrazeneca Pharma surged 4.4% to its day’s high of Rs 7,069 on BSE while Fortis Healthcare shares went up by 3% to Rs 563.55 and those of Natco Pharma shot up 2.5% to Rs 1,585.
The move of reducing the GST on these drugs is aimed at further reducing the overall cost of cancer treatment.
The GST Council has also exempted the import of services by foreign airline companies from related persons or any of their establishments outside India as well as approved flight training courses.
It reduced GST rates on certain cancer drugs and helicopter rides barring charters as well as namkeens or savoury snacks.
Also read: These 10 stocks will trade ex-dividend from tomorrow. Do you own any?
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It is setting up two groups of ministers - one to look into GST on life and health insurance premiums and a second to examine the compensation cess. Members also discussed the status report on rate rationalisation by a ministerial panel as well as tax of online gaming.This was the first meeting of the GST Council after the formation of the new government at the Centre in June.
The GST Council also decided to set up a GoM to decide on the roadmap for the compensation cess beyond March 2026 and will take a call on the additional Rs 40,000 crore collected after adjusting for back-to-back loans taken by the states and interest.
On a year-to-date basis, the shares of Astrazeneca and Natco Pharma have increased by 58.5% and 78.7% respectively, while the shares of Fortis Healthcare have gained 65% in the same time period.
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