NPPA Asks Drug Makers, Medical Device Industry To Pass On GST Rate Cut Benefit To Consumers

 

The National Pharmaceutical Pricing Authority has asked pharmaceutical companies and medical device makers to pass on the benefit of reduced GST rates to consumers with effect from September 22. "The benefit of reduction in GST rates shall be passed on to consumers/patients effective from September 22, 2025.

 

All the manufacturers /marketing companies selling drugs/formulations shall revise the MRP of drugs/formulations (including medical devices) accordingly, with effect from September 22," the authority said in an order.

 

The manufacturer and marketing companies shall issue a revised price list or supplementary price list to the dealers, retailers, state drug controllers and the government, reflecting the revised GST rates and revised MRP, the National Pharmaceutical Pricing Authority (NPPA) stated. Manufacturer and marketing companies shall take immediate measures to sensitise dealers, retailers, and consumers about the reduction in GST rates through all possible channels of communication, including electronic, print and social media, it said.

 

"Industry associations may also release advertisements in leading national newspapers, including vernacular newspapers, to reach out to dealers/retailers to ensure compliance of revised GST rates with effect from September 22, 2025, it added.

 

It is clarified that recalling, re-labelling or re-stickering on the labels of containers or packs of stocks released in the market, prior to September 22, 2025, is not mandatory, if manufacturer/marketing companies can ensure price compliance at the retailer level through measures mentioned above, it said. The 56th GST Council has recommended slashing of GST rates on major drugs from 5 per cent to nil. The medications earlier charged under 12 per cent slab are not shifted to 5 per cent slab.