GST-ON-MRP mode removes motivation for falsified MRP, strengthens the integrity of the supply chain and turns counterfeit infiltration, says letter | Photo Credit: File Photos
In finding rational GST reforms in the pharmaceutical offices of the Association of District Chemists and Drugs in Bangalore (BDCDA), she wrote to the Minister of Financing of Nirmal Sitharaman and demanded a 7% GST uniform at maximum retail price (MRP) of medicinal products.
“The 7% GST on MRP will be a reform for transparency, fair trade and national public health. At present, GST is healing from discounted transaction value and creates a scope for manipulation. Artificial discounts up to 80% – 90% are routinely offered. “Manipulated retail price”. The 7% GST uniform on the printed MRP will eliminate this distortion, restore justice and simplify compliance, ”he said.
“Medicines, including life rescue drugs, antibiotics, injection, anti-cancer drugs and surgical products/injection products, lie outside the drug management order. Inflation, ”said the letter.
GST-ON-MRP mode removes motivation for falsified MRP, strengthens the integrity of the supply chain and turns counterfeit infiltration. It will further reduce profitability, stated it to compliance with the regulations and ensured that patients receive medicines through transparent and responsible business practice, the letter said.
Generics
“Generics screened as” cheap medicines “, often carry margins exceeding 1000%, with false discounts mask the profitable and shrinking GST collections because taxes apply to manipulated transaction values.
“The current GST system divides drugs into plates 0%, 5%, 12% and 18%. Here 0% cover 4% of medicinal products, 5% covers 9% drugs, 12% cover 82% of drugs and 18% cover 5% of medicinal products. Boards and bring even 7% GST per MRP for all medicines.”
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Published – 1 September 2025 20:45 is
