New Delhi: On Friday, the National Pharmaceutical Office for Price Determination (NPPA) issued a directive to all drug and medical manufacturers and directed them to immediately reduce the maximum retail price (MRP) of their products.
This step comes as a reaction to the government’s decision to rationalize the rates of tax and services tax (GST) to drugs and formulations, which is a recommendation made during the 56th GST Council.
The NPPA action, effective September 22, aims to ensure that the benefits of GST reduce are passed directly on to the public.
In the official memorandum on Friday, NPPA set clear instructions for the pharmaceutical industry.
He said that all manufacturers and marketing companies must revise the maximum retail price of their drugs and medical devices to reflect new GST rates.
Although NPPA communication does not specify sanctions for non -compliance, it has the power to monitor drug and medical prices and can take corrective measures. Failure to comply with the NPPA price notifications may lead to prosecution according to the 1955 basic commodities Act, which can lead to imprisonment and fines.
To ensure that it is implemented smoothly, it must issue a revised or additional price list to dealers, retailers, state regulators and government.
“The NPPA Directive is of immense importance to the public. By ordering MRP revision, the Office ensures that GST rates project lower prices for consumers, causing basic medicines and medical devices to be more accessible.
Communication pressure
The regulator also emphasized the need for extended communication to ensure that the public is aware of these changes.
Manufacturers and marketing companies are instructed to use all possible channels, including electronic, printing and social media to inform retailers, retailers and consumers about reduced GST rates and corresponding MRPs.
Industrial associations were also asked to issue advertising in National and Lidové noviny to ensure compliance with the regulations.
The decision is of great importance for both the government parties and the parties to the pharmaceutical industry.
For the government, this shows a commitment to the well -being of consumers and equity, using fiscal policy to reduce the financial burden of citizens’ health care. For industry, NPPA has provided instructions on how to control the crossing.
The Memorandum explains that the appeal or re -marking of existing shares published until 22 September is not mandatory if the company can ensure compliance with the retail level.
Industry’s reaction
However, companies that wish to re -design their shares can do a gradual way to prevent any lack of basic drugs and equipment on the market, said.
“This is a timely and pragmatic step of a government that deals with an important operating challenge facing retailers, manufacturers, importers and distributors whenever the GST rates are revised. The provisions ensure compliance, consumer transparency and preventing material packaging. With the right interests and promotes the right interests, ”said Rajiv Nath, forum coordinator, focused (Association of Indian Medical Re equipment).
NATH has repeated the commitment of the industry to cooperate with the government to exterminate the support of the GST transition and strengthen the Indian production of medical devices and the provision of health care.
At the beginning of this month, Mint said the GST Council announced complete removal of GST, from 12% to Nile, on 33 medicines rescue life used for serious conditions such as cancer and rare diseases.
In addition, 5% of GST were exempt from tax.
Tax benefits also apply to a wide range of medical products.
GST for all other drugs and drugs was reduced from 12% to more accessible 5%.
A similarly wide range of medical devices and supplies, including surgical equipment, dental apparatuses, diagnostic sets and common items such as glucometers and bandages, now attract GST levels of only 5%, which is a significant decline from previous 12%and 18%.
(Tagstotranslate) National Pharmaceutical Office for Price Determination (T) Maximum retail price
