GST: An extra dose of tax on medicines

Active pharmaceutical ingredients, or raw materials, will be taxed at 18%

Veena Mani & Aneesh Phadnis  |  New Delhi/ Mumbai 

The pharmaceutical industry was hoping the goods and services tax (GST) rate on life-saving drugs would be zero, even as it has been capped at 5 per cent and that of all other formulations at 12 per cent. The rates in the GST regime will be slightly higher than what prevail now.   Kanchana TK, director general of the Organisation of Pharmaceutical Producers of India (OPPI), said: “The research-based pharmaceutical industry hoped there would be a reduction in the tax incidence on pharmaceutical products. We believe this reduction would have helped in reducing the medicine prices ...

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Read our full coverage on GST

GST: An extra dose of tax on medicines

Active pharmaceutical ingredients, or raw materials, will be taxed at 18%

Active pharmaceutical ingredients, or raw materials, will be taxed at 18% The pharmaceutical industry was hoping the goods and services tax (GST) rate on life-saving drugs would be zero, even as it has been capped at 5 per cent and that of all other formulations at 12 per cent. The rates in the GST regime will be slightly higher than what prevail now.   Kanchana TK, director general of the Organisation of Pharmaceutical Producers of India (OPPI), said: “The research-based pharmaceutical industry hoped there would be a reduction in the tax incidence on pharmaceutical products. We believe this reduction would have helped in reducing the medicine prices ... image
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