NPPA facilitates the release standards for pharmaceutical companies in the midst of GST Cut: no mandatory sticker revision

With effect from 22 September, manufacturers and marketing companies must pass on the full benefits of the GST reduction to dealers, retailers and ultimately consumers. | Photocredit: JK1991

In a relief of pharmaceutical manufacturers and marketers, the National Pharmaceutical Pricing Authority (NPPA) has clarified that replacing or redesigned drug packages are re -applied

Changes are not mandatory, provided that these companies guarantee the price conformity of the Supply Chain.

The move is intended to prevent potential deficits in essential medicines and medical devices, while industry is preparing for tax benefits from 22 September.

The NPPA has suggested that companies, retailers and consumers raise awareness among all possible channels, such as print and social media advertisements in local languages ​​and ensuring that revised GST rates are reflected in the sale to prevent overpricents.

The guidelines, informed by the Ministry of Chemicals and Fertilizers’ Department of Pharmaceuticals, respond on Friday to representations of industrial associations that seek clarity about the implementation of the 50th meeting of the GST Council from September 2025.

The Council has reduced GST rates for various drug formulations and medical devices.

With effect from 22 September, manufacturers and marketing companies must pass on the full benefits of the GST reduction to dealers, retailers and ultimately consumers.

This includes the revision of maximum selling prices (MRP) for planned formulations, including those under the national list of essential medicines, and informing government drug controllers.

“It is clarified that re -introducing, re -labeling or resticker on the label of container or package of shares/formulations (including medical devices) are not mandatory for manufacturers/marketing companies, as a result of taking measures to guarantee the price conformity at the retail level,” said the notification.

This means that companies must ensure that shopkeepers, intermediaries and buyers are aware of the new (reduced) GST tax rates.

Possible solutions can be via advertisement in newspapers, TV, radio and social media, including in local languages, so that people clearly understand.

Another option could be to tell dealers and retailers directly (via meetings, WhatsApp groups, circulars, etc.) that they have to sell goods at the new price.

At customer or retailer level there must be a double check that retailers update their price lists, so that customers are not charged extra.

Companies that choose to label their shares again or to do it again can do this, after individual directions issued by the Central Drugs Standard Control Organization (CDSCO) on 11 September under Rule 104a of the Drugs and Cosmetics Rules, 1945.

The NPPA emphasized that such voluntary actions should not disrupt the market facility, because the CDSCO guidelines are already tackling the necessary instructions to reduce deficits.

Industry experts greeted the clarification as a pragmatic step.

Published on September 12, 2025