NT Reporter
Panaji
Chemists in the state have asked for a protection period of 90-120 days to transition into the new GST rates, seeking to ensure that those who do not stock lower MRP items are not subjected to punitive action by tax officials.
With the revised GST rates coming into effect from September 22, chemists are left with large inventories of medicines and pharmaceutical products purchased at higher GST rates ranging between 12 per cent and 18 per cent.
The Chemists & Druggists Association of Goa (CDAG) on Tuesday requested input tax credit (ITC) on old stock from the government to avoid additional cash flow burden on
pharmacy owners.
CDAG president Amit Kamat said members are fully committed to working shoulder-to-shoulder with the government to successfully implement the transformative GST reform and ensure its benefits directly reach the people. About 1,000 chemists in the state are registered as
CDAG members.
GST reforms have lowered the tax rate on medicines to 5 per cent, while cancer and life-saving drugs are now completely tax-free.
The All India Organisation of Chemists & Druggists (AIOCD), representing over 12.5 lakh chemists and distributors across states along with CDAG, has welcomed the reforms as a major relief for patients. The retailers’ body said it is in continuous coordination with pharmaceutical companies, software vendors and state associations to ensure uniform implementation of GST.
AIOCD is also providing guidance to pharmacy owners for managing old and new MRPs during the transition phase. The tax cuts are expected to make healthcare more affordable and accessible to millions of Indians.
Meanwhile, large chain pharmacy companies in the state have disclosed that revised MRPs of products and GST benefits are being passed on to customers since Monday.
