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Page 164 - Gst

GST effect: Prices of major essential drugs to rise by up to 2.29%

Drug price regulator is confident that pharma industry would adopt tax system without much trouble

Updated On : 13 Jun 2017 | 2:41 PM IST

10% hike too little, we want more to offset GST impact, say pharma players

The pharmaceutical industry has sought permission to increase prices of non-scheduled drugs by more than stipulated 10 per cent in a year as the tax rate on most drugs was increased to 12 per cent under the proposed GST regime from the current incidence of nine per cent. In a meeting held by the Department of Pharmaceuticals with the drug industry, pharma representatives raised this issue. As per the Drug Price Control Order (DPCO) 2013, pharmaceutical companies can increase the price of non-scheduled drugs by upto 10% each year. While 80 per cent of drugs have been put under the 12 per cent GST rate, essential drugs are in the 5% bracket. The industry also raised the issue of refunds on taxes paid on input, called input tax credit in the technical jargon. The GST Council has decided that for stocks whose receipts are not available with dealers, only 40 per cent input tax credit will be given. However, the industry wanted 100 per cent refund.An industry representative who attended ...

Updated On : 13 Jun 2017 | 1:39 AM IST

Jewellery, tractor makers to gain from revised GST

The Goods and Services Tax (GST) Council's decision to lower rates on 66 items brought cheer to a host of companies in the jewellery, cinema and pharmaceutical sectors.Take jewellery companies. While a lower than expected rate of three per cent on gold was a positive, the earlier decision was to have 18 per cent (from two-three per cent) on making jewellery from plain gold. This would have meant price increases by jewellery makers, which could have impacted the volume. Importantly, it would have further widened the price differential between jewellery sold by organised entities like Titan, PC Jeweller and TBZ from counterparts in the unorganised sector. With this rate now down to five per cent, the organised sector entities can take calibrated price hikes and still gain market share from the others, who will see elevated compliance-related costs with GST implementation. Multiplex companies such as PVR and Inox Leisure will not be impacted much from the reduced rates (18 per cent ...