Life-saving medicines to become cheaper: GST rate cut to 5% w.e.f September 22

In a significant relief to patients and consumers, the Goods and Services Tax (GST) rate on medicines is set to be reduced from 12% to 5% effective September 22. This move aims to make life-saving medicines more affordable and accessible to the general public.

As per the new directive, medicine manufacturers and distributors will be allowed to charge up to 5% GST on medicines, ensuring a substantial reduction in prices. Additionally, some medicines have been completely exempted from GST, further easing the burden on consumers.

To ensure compliance with the new rates, State Drug Controllers have issued directives to all medical stores in the state, instructing them to sell medicines with the reduced GST rate. Citizens can now check the fair price of medicines on ‘Pharma Sahi Daam’ mobile app, developed by the National Pharmaceutical Pricing Authority (NPPA) under the Ministry of Chemicals & Fertilizers, providing transparency and accountability.

The government has also established a mechanism for consumers to file complaints if they are charged excessively for medicines. A toll-free number, 18003453405, has been designated for this purpose, allowing consumers to report any violations. Strict action will be taken against those who fail to adhere to the new regulations, ensuring that the benefits of the GST rate cut are passed on to the consumers.

This move is expected to bring significant relief to patients and consumers, particularly those who rely on life-saving medicines. With the reduced GST rate and increased transparency, the government aims to make healthcare more affordable and accessible to all.