The Department of Pharmaceutical Products (DoP) has set up a GST facilitation center to enable pharmaceutical companies to successfully implement the new tax regime.
"In order to help and support the pharmaceutical industry in ensuring the smooth and successful deployment of GST, a clearing cell is set up," the DoP said in a statement. The cell will be in constant contact with major industry and business associations and sectoral groups on drugs and pharmaceuticals and will serve as the first contact to address any issue related to the sector, it added.
The Government has set a 12 percent GST rate on most essential drugs, compared to the current tax incidence of about 9 percent. However, some select drugs like insulin will see a reduction in prices with the government reviewing the GST rate down to 5 percent from the 12 percent previously proposed
