According to the new GST rules, no exemption will be given on expired or damaged drug products and if this happened then pharma industry will be expected to lose Rs.500 crore annum.
As a solution to save the industry from these losses, The Alliance urges GST council to find a way out for the medicinal goods that are not sold or consumed. Retailers send back all the expired and damaged stock back to the manufacturer.
Additional costs burden is being imposed on the manufacturers because while returning damaged or expired drugs, the new invoice has GST implemented again.D G Shah, Director General of the Alliance said that Our concern is that, why they need to pay GST again for the products that are not sold and damaged. This is a very serious concern and we already shared our concern with the GST council to help manufacturers and look into the matter and find a solution. We are looking forward and hoping the GST council will come out with positive solution favoring the pharma companies.
A conglomeration of big pharma manufacturers across the country forms
the Alliance and is in conversation with GST council regarding exemption must apply in cases, where medicines overshoot their expiry date or are damaged.
The Alliance sharing these kind of issues with the government time by time and hoping to that the GST council will definitely come out with positive solutions and save the pharmaceutical industry from the loss.