In a boost to the pharma sector, the government has slashed the goods and services tax (GST) rates on all pharmaceutical formulations from 12% to 5%. Further, exemption is provided for 33 lifesaving drugs where the tax rates have been brought down from 12% to zero in addition to exempting three more critical medicines that are used to treat cancer, rare and chronic diseases from 5% to nil. The reduction in GST rate has been accompanied with certain reforms wherein the pharma companies will be able to claim 90% provisional refunds arising from the inverted duty structure.