Minister of State for Chemicals and Fertilisers Mandaviya said that after GST, many medicines have been approved due to which there is a huge growth in the number of medicines i.e. of 6 percent to Rs 1,31,312 crore till May 31 on the year-on-year basis.
He also added that the effect of GST (Goods and Services Tax) on drugs has been hugely productive and positive.
In a statement, Mandaviya said, “Before GST, annual turnover of the pharma sector (as on May 31, 2017) was Rs 1,14,231 crore.”
He also explained the reason for the growth by adding that under the One Nation, One Tax reign, the problem faced by multiple taxes has been removed which minimized their cascading effect on the final product.
Mandaviya said “GST is expected to decrease the manufacturing cost in view of merging of different taxes levied earlier and promote ease of doing business. It will create one single market for all stakeholders with equal chance towards development.”
He added that drug companies can now set and merge their warehouse at their strategic location, which will cut cost the distribution. This will help the warehouse strategy which will improve the supply chain ability in the sector.
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