Latest News – Prices of a majority of essential drugs will increase by up to 2.29 per cent when the Goods and Services Tax(GST) regime kicks in from July 1. The government has fixed GST rate of 12 per cent on most of the essential drugs as against the current tax incidence of around 9 per cent.
However, some select medicines such as insulin will see a reduction in prices with the government revising GST rate downwards to 5 per cent from 12 per cent proposed earlier. The National List of Essential Medicines includes the likes of Heparin, Warfarin, Diltiazem, Diazepam, Ibuprofen, Propranolol and Imatinib.
Drug price regulator National Pharmaceutical Pricing Authority(NPPA) has already notified that the revised ceiling prices of scheduled drugs, where excise duty is levied on Maximum Retail Price (MRP), will be calculated by applying a factor of 0.95905 to the existing ceiling price. This will be exclusive of applicable GST (Read More)