The GST would not have an impact on the prices of non-scheduled formulations which account for nearly 80 per cent of the pharma sector, the Rajya Sabha was informed today.
In a written reply to the Rajya Sabha, Minister of State for Chemicals & Fertilisers Mansukh L Mandaviya said that the government has analysed the impact of GST on prices of the formulations.
"It is noticed that there will be almost no impact on the prices of non-scheduled formulations which account for nearly 80 per cent of the total pharmaceuticals sector," Mandaviya said.
In respect of scheduled formulations, there is no impact on the prices of about 4 per cent formulations, which mainly include medications related to immunisation program, anti- cancer, oral rehydration salts, contraceptives among others, he added.
"In most of the remaining formulations, which account for nearly 16 per cent of total pharmaceutical sector, there is an increase in the prices to the extent of nearly 2.3 per cent," Mandaviya said.
The government has already fixed the ceiling prices of 851 formulations/ (packs) included in revised Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO, 2013).
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