Pass GST Rates Rationalisation Benefits To Consumers: Dept Of Pharmaceuticals Asks State Drug Controllers

New Delhi: The Department of Pharmaceuticals, which functions under the Ministry of Chemicals and Fertilisers, has asked drug controllers and the food and drug administration of all states and UTs to take steps to pass the benefit of the GST rates rationalisation to consumers and patients, effective from September 22.

The Centre recently decided to rationalise GST rate structures as recommended in the 56th meeting of the GST Council, wherein the council had also recommended a reduction in GST rates on drugs/formulations (including medical devices). "Representations have been received from the manufacturers and marketing companies and industry associations seeking clarification and guidance on issues of implementation," a letter issued by Rashmi Tahiliani, director of pricing, said.

The department said all manufacturers and marketing companies selling drugs and formulations (including medical devices) shall revise their MRPs accordingly from September 22. "The manufacturer and marketing companies shall issue a revised price list or supplementary price list, in Form V/VI, to the dealers, retailers, state drug controllers and the states reflecting the revised GST rates and revised MRP," the department has said.

The manufacturer and marketing companies shall take immediate measures to sensitise dealers, retailers, and consumers on GST rate cuts through all possible channels of communication, including electronic, print and social media. Industry associations may also release advertisements in leading national newspapers, including vernacular newspapers, to reach out to dealers and retailers, ensuring compliance, the department said.

"It is clarified that recalling, re-labelling or re-stickering on the labels of containers or packs of stocks released in the market, before September 22, is not mandatory, if manufacturer and marketing companies can ensure compliance at the retailer level through measures mentioned above," the department further said.

However, manufacturers and marketing companies who desire to relabel the stock available in the market may do so in a phased manner so that it does not cause a shortage of drugs and formulations (including medical devices) in the market.

The drug controller has already issued directions in this regard on Thursday under Rule 104A of the Drugs and Cosmetics Rules, 1945.

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