|
FOPE seeks clarification from NPPA on drug pricing following GST 2.0
|
|
Nandita Vijayasimha, Bengaluru
September 23 , 2025
|
|
|
The Federation of Pharmaceutical Entrepreneurs (FOPE) is seeking a clarification from the National Pharmaceutical Pricing Authority (NPPA) on pricing of drugs pursuant to implementation of GST 2.0
Harish Jain, president, FOPE, in his communication to P Krishnamurthy, chairman NPPA, said that its members believe in seeking for a practical solution which will help the industry pass on the intended benefit to the consumers in a smooth manner, while avoiding confrontation with the authorities and trade.
“We understand that there is no exception under Drug Price Control Order (DPCO) and the effect of GST has to be implemented fully in consonance with the provisions mandated under Para 24 and Para 25 of DPCO. This is without disturbing the provisions of the Para 20 of DPCO,” said Jain.
With reference to the scheduled formulations, Para 24 of the DPCO clearly governs the pricing of scheduled formulations and provides a 45-day window to align MRPs when a notified price takes effect.
Although the ceiling price itself remains unchanged the combined effect of ‘ceiling price+local taxes’ has resulted in a reduction in MRP due to the GST rate cut. Accordingly, the same 45-day period needs to be permitted to ensure compliance and to avoid duplication in the trade.
The industry will issue the revised price lists within this 45-day period, applicable both for fresh supplies and for good already in the market.
In the case of non-scheduled formulations, defined under Para 2 (v) of DPCO are governed by Paras 25 and 20. While the industry is committed to passing on the GST reduction to consumers effective September 22, 2025, we are submitting that Para 20 relating to permissible annual price increases should not be disturbed, Jain said in his note to the NPPA chairman.
Manufacturers should retain the right to increase MRP by up to 10 percent upon completion of one year from last price increase, unaffected by the current GST-driven price reduction. A clarification from NPPA office harmonising Para 20 with the reduction, will help maintain regulatory consistency and provide the much-needed reassurance to the industry, he said.
While submitting the revised Form V now in view of the decrease in GST in the column ‘Effective Batch Number,’ our members will be mentioning that due to reduction in GST. Further, we are also resubmitting that re-stamping or sticker is legally permissible, and hence our members will issue the revised price lists strictly in consonance with Paras 24 and 25 to implement lower prices.
FOPE president Jain said that the NPPA should issue a clarification at the earliest to resolve the concern.
|
|
|
|
|
|
|
|
TOPICS
|
The Food and Drug Administration (FDA), Maharashtra, has issued a public advisory urging citizens to report any misleadi ...
|
|
|
|
|