The Indian pharmaceutical industry anticipates relief from Goods and Services Tax (GST) inversion, where Active Pharmaceutical Ingredients (APIs) are taxed higher than finished medicines. This structure has led to blocked working capital, refund backlogs, and liquidity pressure, especially for MSMEs and exporters. Recent discussions between companies and the government suggest a favorable resolution as part of upcoming GST reforms. This move aims to alleviate financial strains and prevent potential supply disruptions.

Source: The Economic Times