NPPA recommends medicine manufacturers to lower medicine after GST rate cut

New -delhi: The National Pharmaceutical Pricing Authority (NPPA) issued an assignment to all drug and medical devices manufacturers on Friday, which they ordered to reduce the maximum retail price (MRP) of their products immediately. This move comes as a response to the government’s decision to rationalize the rates for goods and services (GST) on drugs and formulations, a recommendation made at the 56th meeting of the GST Council. The actions of the NPPA, effectively on September 22, are aimed at ensuring that the benefits of the GST reduction are transferred directly to the public. In an official memorandum on Friday, the NPPA set out clear instructions for the pharmaceutical industry. It is said that all manufacturers and marketing companies must review the maximum selling price of their medicine and medical devices to reflect the new GST tariffs. Although the NPPA communication does not specify fines for non-compliance, it has the authority to monitor medicines and medical devices prices and can take corrective steps. Non-compliance with NPPA’s price notices can lead to prosecution under the Essential Commodities Act, 1955, which can lead to imprisonment and fines. To ensure that it is implemented smoothly, they must issue a revised or supplementary price list to traders, retailers, state drug controllers and government. “The NPPA’s Richtieijn is of great importance to the public. By requiring the review of MRPs, the government is to ensure that the GST rate reduction leads to lower prices for consumers, making essential medicines and medical devices more affordable and accessible. Communication -pushing the regulator also emphasized the need for widespread communication to ensure that the public is aware of these changes. Manufacturers and marketing companies are instructed to use all possible channels, including electronic, print and social media, to inform traders, retailers and consumers about the reduced GST tariffs and the corresponding revised MRPs. Operational associations were also asked to release advertisements in national and rural newspapers to ensure compliance. The decision is very important for both the government and the stakeholders of the pharmaceutical industry. For the government, it shows a commitment to consumer welfare and health interest, which utilizes fiscal policy to reduce the financial burden of healthcare on citizens. For the industry, the NPPA gave guidance on how to manage the transition. The memorandum makes it clear that the recall or reaffirmation of existing stock released before 22 September is not mandatory if companies can ensure price compliance at the retail level. However, the response of the industry can, in a phased way, say businesses that want to refute their stock to prevent any market shortages of essential medicines and devices. “It is a timely and pragmatic step by the government that addresses an important operational challenge that retailers, manufacturers, importers and distributors face when reviewing GST rates. Forum coordinator, said (Association of Indian Medical Devices Industry). Medicines used for serious conditions such as cancer and rare diseases. Dental appliances, diagnostic sets and ordinary items such as glucometers and mortgages, now attract a GST rate of just 5%, a significant drop of the previous 12% and 18%.