NPPA bars price revision of non-scheduled drugs post GST

Other drug prices can't be hiked more than 10% within 12 months

The National Pharmaceutical Pricing Authority (NPPA) has turned down the industry's demand to allow a one-time price revision of non-scheduled drugs following GST implementation.

NPPA caps the prices of drugs under the National List of Essential Medicines (NLEM). In respect of other drugs the government rules restrict companies from hiking price over 10 per cent in twelve months.

The Indian Drug Manufacturers Association had demanded a one-time waiver from the rule thus enabling companies to hike prices of products which have already been revised upwards by 10 per cent.

“The companies will have no option but to absorb the net increase, if any, in the incidence of tax on implementation of GST within the permissible limit of 10 per cent for increase of maximum retail price compared to the MRP of preceding 12 months,” Roshni Singh, Director (Pricing), NPPA said in her order.

The authority in its meeting on Thursday decided to notify ceiling prices of scheduled drugs exclusive of applicable GST rates upon their final notification