New Delhi,sep 16
Consumers will get the benefits of reduced GST on medicines that have been manufactured and on chemist shelves before the new rates are implemented from September 22.The sweeping GST reforms unveiled on September 3, among other measures by the central government, have provided a substantial relief on health care, with taxes being either fully exempted or brought down to the lowest slab.Since then, there has been a widespread query about what will happen to medicines already in the supply chain before the new GST rates come into effect.Is it required to recall and re-label MRP on medicines already in the supply chain before September 22, 2025? How will the re-labelling be implemented?To settle the curiosity of the public, an FAQ has been put out, asserting the National Pharmaceutical Pricing Authority’s position on the matter. NPPA has so far, on two occasions, said that all manufacturers/ marketing companies selling drugs/ formulations shall revise the Maximum Retail Price (MRP) of drugs/ formulations (including medical devices).The manufacturers/ marketing companies shall issue a revised price list or supplementary price list, in Form V/VI, to dealers and retailers for display to consumers, and to State Drug Controllers and the Government, reflecting the revised GST rates and revised MRP.Recalling, re-labelling, or re-stickering on the label of a container or pack of stocks released in the market prior to September 22, 2025, is not mandatory if manufacturer/ marketing companies are able to ensure price compliance at the retailer level.So, all in all, the consumers will avail the benefits of the GST rate rationalisation.The sweeping changes have been made under the next-generation GST (Goods and Services Tax) rationalisation just days after Prime Minister Narendra Modi announced it from the ramparts of the Red Fort on Independence Day.
This is aimed at reducing the tax burden on citizens while stimulating economic growth.On September 22, the first day of Navratri, all changes in GST rates will come into effect, much before Diwali, which was indicated by the prime minister from the ramparts of the Red Fort on Independence Day this year.The GST Council, on September 3, after a threadbare discussion, approved significant rate cuts across multiple sectors, which the government has described as a Diwali gift for the nation.As expected, the healthcare sector has received crucial relief as well, with individual health and life insurance policies being fully exempted from GST, at 18 per cent earlier.
