“All manufacturers and distributors must revise the maximum retail price of drugs / formulations with reduced tax / GST rates in order for the revised tax / GST rates to take effect,” the authorities said. Said.
Changes in the tax rate or GST tax rate affect the fixed retail price of items that attract taxes, so downward changes in taxes should be reflected in prices and the tax benefits of tax cuts should be passed on to consumers. I added.
The Central Board of Indirect Tax and Customs (CBIC) announced on Tuesday that 18 Covid-related relief supplies would have their GST cuts until September 30, after the GST Council approved the cuts. Rate changes apply to stocks that are already on the market.
Remdesivir injections, anticoagulants, all drugs recommended by the Ministry of Health for Covid treatment, medical grade oxygen, oxygen generators, pulse oximeters, ventilators, specific diagnostic kits, and GST for Bipap machines have been around for some time. Reduced to 5% 12% or applicable rate.
GST for hand sanitizers, temperature checkers and electric furnaces used in crematoriums has been reduced from 18% to 5%. The ambulance tax GST was reduced from 28% to 12% while tocilizumab and amphotericin B were completely exempt from GST.
“If a manufacturer can ensure price compliance at the retailer level through the issuance of a revised price list, recall, relabel, or relabel inventory containers or packs released on the market prior to the notification date. It is not mandatory to attach it. “The authorities instructed.
According to experts, manufacturers are responsible for all retailers to make immediate price cuts regardless of old price tags. Otherwise, the manufacturer will have to call back the entire inventory and fix the new price tag.
“Retailers of unsold amphotericin B and tocilizumab used to treat black fungus and Covid 19 are exempt from tax on items and the entire input tax credit for the same is a division,” said Rajat Mohan, senior partner at AMRG Associates. Stated.
NPPA directs manufacturers and marketing companies to pass on the benefits of GST reductions to their customers, Health News and ET Health World.
Source link NPPA directs manufacturers and marketing companies to pass on the benefits of GST reductions to their customers, Health News and ET Health World.