Medicines Released Before Sept 22 Can Be Sold Without Re-Labeling: Govt
Pharma companies can adjust revised GST impact at retailer level; distributors raise concerns over financial burden.
New Delhi, Sept 16: The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, has clarified that drug manufacturers are not required to recall or re-label medicines already released in the market before September 22, the date when new GST rates come into effect.
Instead, pharmaceutical companies have been directed to ensure compliance by revising the Maximum Retail Price (MRP) through supplementary or revised price lists. These must be issued to dealers, retailers, State Drug Controllers, and the Government for display to consumers.
“At the retailer level, companies should ensure revised pricing reflects the new GST rates,” NPPA’s Office Memoranda stated.
The clarification follows the 56th GST Council meeting earlier this month, which reduced tax rates on several pharmaceutical productsfrom 12% or 18% to 5% or even zero per cent.
Meanwhile, the Retail Distribution Chemists Alliance (RDCA) expressed concern about the transition’s financial impact on distributors and retailers. RDCA president Sandeep Nangia, in a letter to pharma industry stakeholders, warned that the treatment of returns could cause significant losses. “Any product returned after September 22 will be credited at the new 5% GST rate, even if purchased at 12% or 18%,” he noted, urging urgent industry support to ensure uninterrupted medicine supply.
