Post GST roll-out, pharma industry leaders share their views on the change in taxation, giving their insights on whether GST is a boon or a bane
Kaushik Desai, General Secretary IPA
It’s little early to comment on GST impact on the pharmaceutical industry. Most of the manufacturers are making their efforts to exhaust the inventory where taxes have already been paid. The stock for many of the products are likely to last till August 2017. Hence, consumers would not feel any impact. Subsequently, there could be marginal rise in the pricing for few products but on a long term, there are likely to be savings due to single tax structure and streamlining of supply chain activities. Although, GST has come into effect from July 1, the manufacturers are still trying their best to understand in totality the GST implementation process.
Ravi UdayaBhaskar, DG, Pharmexcil
According to my understanding, GST will not have any serious impact on pharma exports. Exporters will have to pay GST and take refund on every export consignment and it leads to high working capital. Customs duty paid on imported materials will add to the cost of export goods unless advance licensing scheme continues.
Deepnath Roy Chowdhary, National President, IDMA
Due to 40 per cent input credit, eligibility restriction on transition stock, inventory levels in the distribution channel have progressively gone down during the last 60 days. Our members i.e manufacturers have been doing their best to ensure availability. National Pharmaceutical Pricing Authority (NPPA) has announced revised ceiling price for scheduled formulations on time. There is total clarity about the pricing aspect. It appears that a section of the trade are not yet fully prepared for the GST regime. However, at the end of the day, hopefully, an effective transition will ensure availability of medicines to the citizens at large.
Abhay Kumar, National President, Indian Pharmacist Association
Indian Pharmacist Association welcomes the initiative of the government to implement GST from July 1, 2017. The association is optimistic about GST and believes that it will have a positive impact on the entire pharma business. Although, there are apprehensions that prices of some medicine may go up, but rates of many important drugs will be reduced as well. Pilferage and misuse of some drugs will be effectively controlled if government takes initiative to establish the drugs control department in every state along with GST. If it is made compulsory that pharmacist will only be the proprietor of the ambitious project of Government of India – Jan Aushadhi store then compliance will be much better in present post GST scenario. Although the actual impact of GST on pharma business will be known only after three to four months, I strongly believe that it will make a healthy atmosphere for the entire business industry along with the common people.
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