GST regime likely to reduce key drug prices
The roll out of GST would reduce the prices of essential drugs too. The National Pharmaceutical Pricing Authority (NPPA) on Tuesday announced provisional ceiling prices of 761 medicines, including anti-cancer, HIV, diabetes and antibiotic, with a majority being reduced ahead of the GST implementation.
However, the NPPA said that the actual increase or decrease in prices after the rollout of new indirect tax regime is expected to be in the range of 2-3 per cent depending on states.
"In order to facilitate smooth implementation of GST for companies, we have worked out the provisional ceiling prices of 761 formulations," NPPA Chairman Bhupendra Singh told Millennium Post. Singh further added that the actual price increase or decrease in drug prices post GST would be nominal ranging between 2-3 per cent.
NPPA has asked pharmaceutical firms to check the list and inform it if there is a need for any correction by June 29 as the GST is to be rolled out from July 1.