Medications will be cheap
The government has ordered all pharmaceutical companies to make changes in the MRP of medicines, formulation and medical devices from 22 September 2025 under the new GST system. The National Pharmaceutical Pricing Authority has said that customers and patients will get the benefit of reduction in GST rates. The government has asked drug companies to release dealers, retailers, state drug controllers and the government to release new GST rates and new price list or supplementary price list with updated MRPs.
The notice has clarified that if companies ensure price compliance at retail level, they do not need to withdraw, re-labe or stickers available in the market before 22 September. Regulator has suggested that the industry associations can advertise in local and national newspapers and make information about new GST rates to dealers and retailers.
Change in GST Rate
The Ministry of Chemicals and Fertilizers issued a notification regarding this on Friday, as the price of drugs and packaging are out of the scope of legal metrology, which applies to FMCG products. In the 56th GST Council meeting held on September 3, 2025, major changes were made in GST rates. The council reduced the GST rate on major drugs from 5% to zero. About 33 generic medicines have become tax free and the new rates will be effective from 22 September 2025.
Wading, gauze, straps and such things, such as dressing, adorable plaster, poultry, which are coated with medicinal substances or are packed for retail cells for medical, dental or waiting. They will now be charged 5% tax, which was 12% earlier. The government has reduced the GST rate from 18% to 5% on most products like Talcum powder, face powder, hair oil, shampoo, dental floss, toothpaste, toilet soap, shaving cream, shaving lotion and after shave lotion.