New Delhi: Good news for patients and their families! From September 22, the prices of medicines and medical devices are set to drop significantly. The government has decided to implement a new GST framework, under which companies will have to fix a revised Maximum Retail Price (MRP) for their products. This move will directly benefit consumers and patients.
The Ministry of Chemicals and Fertilizers has issued a notification directing all pharma companies to prepare a revised MRP for medicines, formulations, and medical devices, and share it with dealers, retailers, state drug controllers, and the government. At the same time, the National Pharmaceutical Pricing Authority (NPPA) has made it clear that companies must pass on the full benefit of this tax reduction to consumers.
What about the old stock?
The government has allowed companies that released stock before September 22 to neither recall it nor put new labels on it. However, it must be ensured that consumers are charged only the revised prices at the retail level.
Which medicines and products will be affected?
Under the new system, GST on several essential medicines has been reduced from 5 per cent to 0 per cent. For medicines used to treat serious illnesses like cancer and asthma, GST has been cut from 12 per cent to 5 per cent. Similarly, GST on items such as wadding, gauze, bandages, and dressing materials has been reduced from 12 per cent to 5 per cent. In addition, everyday products like talcum powder, hair oil, shampoo, toothpaste, soap, shaving cream, and aftershave lotion will now attract only 5 per cent GST instead of 18 per cent.
Awareness campaign also necessary
The ministry has also stated that pharma companies and industry associations should inform consumers and retailers about the revised prices through newspapers, social media, and other platforms. This will help maintain transparency at every level and ensure that patients receive the direct benefit.
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