• twitter-icon
Unlimited Tax Return Filing


Essential Medicines to Inflate by Few Percent After GST

GST News on Medicines

In the new indirect taxation regime prices of necessary drugs or medicines will go up by 2.29 percent when the GST implements from next month. Basic essential medicines are categorized under the 12 percent GST rates in new taxation regime and the GST rates were declared by the government in the GST Council Meeting. Under the current taxation, structure medicines are taxable at the rate of 9 percent.

The government has revised the taxation rates of some medicines such as insulin and it will be now levied at 5 percent instead of 12 percent proposed earlier. Heparin, Warfarin, Diltiazem, Diazepam, Ibuprofen, Propranolol and Imatinib are some of the names of essential medicines which are listed on the National List of Essential Medicines.

It is announced by the National Pharmaceutical Pricing Authority that the revised ceiling price of scheduled drugs, in which excised duty is imposed on MRP, it will be calculated on the basis of factor 0.95905 on the existing ceiling price.

According to NPPA, talking about the non-scheduled drugs the Pharmaceutical companies have no other choice available to adopt the net increase if prices of the medicines increases or exceeds beyond the allowable limit of 10 per cent of MRP and it happens when there is any increase in taxation rates on new GST Regime.

NPPA also added that in the case of scheduled drugs, medicines those are non-taxable from the excise duty, their present notified ceiling price would be treated as the new ceiling price. This will be exclusive of applicable GST Rates.

The leading Pharma industry is confident enough and will ready to implement the new indirect taxation structure without facing any issues. NPPA Chairman Bhupendra Singh told that, “I am confident that GST implementation will be by and large smooth and will not cause any major disruption in the availability of drugs in the country,”

The government has revised the GST rates on medicines such as insulin and reduces its rate from 12 percent to 5 percent. Now the insulin will levy 5% percent taxation rates in new taxation regime. The companies will be required to reduce the Maximum Retail Price. According to NPPA, In term of savings due to the lower taxation rates, the benefit may be provided to consumers just by availing anti-profiteering clause in the GST compliance.

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Poonam Hotwani (Ex-Employee)
Poonam Hotwani completed her schooling and graduation from Kota (Rajasthan). Pursued her MBA from Poornima Group of Colleges in Jaipur. Being a management student, she began her career as an academic content writer. She is dedicated, passionate and sincere about her work. Her keen interest areas are exploring websites, reading, writing and cooking. View more posts
SAGINFOTECH PRODUCTS

Join the Conversation

1 thought on "Essential Medicines to Inflate by Few Percent After GST"

  1. I know about GST but didn’t read this information about medicines.
    This article is really informative. Thanks for posting this. I will share with my friends.

Your email address will not be published. Required fields are marked *

Follow Us on Google News

Google News

Latest Posts

New Offer for Professionals

Super Tax Offer

Upto 20% Off
Tax, ROC/MCA, XBRL, Payroll, Online GST

Limited Offer, Hurry

Big Offer for Tax Experts

Upto 20% Discount on Tax Software

    Select Product*

    Current GST Due Dates