Life-saving drugs may see a marginal increase in price while other OTC formulations might get more expensive post GST implementation.
23 May, 2017The GST rate announced for the pharmaceutical industry is contrary to what the industry had been expecting. Though the sector had been wishing for zero tax, the GST Council has capped the rate of life-saving drugs at 5% and other formulations at 12%. So effectively, the rate of medicines post-July will be higher than what they are now.The list of essential medicines includes those that treat malaria, HIV-AIDS, tuberculosis, and diabetes. Everything else falls under the 12% bracket.As reported in Economic Times