Most medicines now at 5% slab, faster refunds allay ITC worries
AI-Generated Summary
The government has significantly reduced GST on most pharmaceutical formulations from 12% to 5%, and fully exempted 33 life-saving drugs and three critical medicines. GST on medical devices has also been cut from 12% to 5%. These measures are coupled with reforms for faster provisional refunds, aimed at resolving working capital issues for the pharma industry. Experts largely view these changes as beneficial for patient affordability and accessibility, as well as for industry growth, despite some concerns regarding API GST rates.
In a nutshell
This policy initiative reflects a dual commitment to improving healthcare affordability for citizens and supporting the growth of the pharmaceutical and medical device industries. While broadly welcomed, the article also subtly points to areas like API GST rates and refund assessment mechanisms where further policy alignment could enhance the overall positive impact.
Source: The Financial Express
