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After GST, pharma sector grew 6% to Rs 1.31 trn till May-end: Mandavaiya

Impact of the GST on the sector has largely been positive and constructive

Press Trust of India  |  New Delhi 

GST, IGST, CGST

Impact of the (GST) on the sector has largely been positive and constructive, he added.After the implementation of GST, the grew 6 per cent to Rs 1.31 trillion on a year-on-year basis till May 31, Minister of State for Chemicals and Fertilisers Mansukh Mandaviya said Thursday.

"Before GST, annual turnover of the pharma sector (as on May 31, 2017) was Rs 1.14 trillion," Mandaviya said in a statement.

Elaborating on the reasons for the growth, he said that under the 'One Nation, One Tax' regime, the removal of the complexity of multiple taxes has reduced their cascading effect on the final product.

"is expected to decrease the manufacturing cost in view of merging of different taxes levied earlier and promote ease of doing business. It will create one single market for all stakeholders with equal chance towards development," Mandaviya said.

Pharmaceutical companies can now consolidate their warehouses at strategic locations, effecting a reduction in the cost of distribution. As a result, it will benefit the warehouse strategy and improve supply chain efficiency in the sector, he added.

There has also been a significant jump in the number of drug approvals after GST, Mandaviya said.

First Published: Thu, November 15 2018. 15:40 IST
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