Prices of essential medicines may be up after GST implementation
Posted on: 15/Jun/2017 10:31:53 AM
It is expected that the prices of essential medicines may go up by 2.29% once GST is implemented.
The central government has fixed a GST slab of 12% for most of the essential medicines. However, they have now been brought under the 9% slab. The price of some of the medicines, such as insulin, will come down after GST is implemented.
Some medicines, which are currently drawing 12% tax, have been brought under the 5% GST slab.
The head of the NPPA (National Pharmaceutical Pricing Authority), Mr, Bhupendra Singh, informed that he is confident that the social status will go to a new level once GST is implemented. He also expressed that there will not be any problems in the distribution of medicines.
As some of the medicines, including insulin, have been brought under the new 5% GST slab, the medical companies are constrained to reduce the MRP. The benefits of the tax reduction will be passed to all sections.
