The All India Organisation of Chemists and Druggists (AIOCD) has called for reducing GST on all medicines.
All medicines should be brought under the 5 per cent GST slab, while critical life-saving medicine should be fully exempted (0 per cent). The AIOCD in an appeal to the Union Finance Minister and the GST Council, stated this. The association represents 12.40 lakh chemists and distributors from across the country.
Essential medicines under the Drugs (Prices Control) Order (2013) should not face an additional tax burden, the association said. “All medicines, vitamins, probiotics, nutritional and food supplements, and baby food should fall under 5 per cent GST,” the appeal stated. “Medicines for cancer, kidney, cardiac diseases, chronic/rare disorders, and blood derivatives should be placed under 0 per cent GST,” it added. About 2,817 formulations are listed as essential medicines under DPCO 2013, covering 27 therapeutic areas, it said.
The AIOCD submission comes against the Centre’s move to rationalise GST rates.
Ayurvedic medicines should not face higher taxation following the proposed abolition of the 12 per cent GST slab, the AIOCD said. Preventive medicines and micronutrient supplements should remain affordable, it added. “With the 12 per cent GST slab being abolished, all medicines currently in that slab should shift to either 0 per cent or 5 percent,” it added.
“Clear guidelines must be issued to apply revised GST rates on stock purchased under the higher slab,” AIOCD President JS Shinde and General Secretary Rajiv Singhal, said in their submisison, adding that medicines are not luxury commodities but lifelines. “Reducing GST will directly ease the burden on millions of patients and families, especially those without health insurance,” the submission added.
Source from: https://www.thehindubusinessline.com/news/national/aiocd-calls-for-gst-rate-cuts-on-medicines/article69968734.ece
