|
 The Bangalore District Chemists and Druggists Association (BDCDA) has expressed serious concern over the widespread discrepancies in tax mapping across pharmaceutical products, citing growing confusion and operational challenges faced by wholesalers and retailers. The lack of a Central Product Registry has further aggravated the issue, leading to inconsistent tax application and regulatory non-compliance risks.
In a formal communication, BDCDA has called upon the All India Organisation of Chemists and Druggists (AIOCD) to urgently intervene, emphasizing that uniformity in tax classification and the establishment of a centralized product registry are critical to ensure compliance, pricing transparency, and smooth operations across the supply chain.
In fact, BDCDA also warned that failure to address these issues promptly could result in disrupted distribution, financial losses, and legal complications for thousands of pharmacies nationwide.
BDCDA president B Thirunavukkarasu, in his communication to AIOCD president JS Shinde about the current on-ground crisis, noted that with regards to Incorrect Tax Mapping, most billing software still carries outdated rates of 12% to 5%, 18% to 5%, while certain categories, especially cosmeceuticals and dermatological products, continue to attract 18% GST.
Further, the BDCDA chief went on to state that there is no single national, open-access database listing every pharmaceutical product with its exact HSN code, current GST rate, and MRP, resulting in pricing errors, stock delays, and compliance risks.
To stabilise the supply chain and protect patient interests, we urge for the creation of an ‘AIOCD Supply Chain Intelligence Network’, which should provide a comprehensive product list. Here, we need a brand-wise and generic-wise information with exact HSN codes and live GST tax slabs, he said.
Also, there is a need for real-time updates for immediate reflection of any future tax or classification changes. Besides, for universal access, there should be a free integration with billing software for retailers and distributors and direct access for consumers, so every citizen can verify the exact MRP and GST deduction data before purchasing a medicine, stated Thirunavukkarasu.
Delving on the lessons to take forward, the BDCDA chief said the rollout of GST 2.0 is more than a policy change; it is a reminder that reform needs more than legislation. It demands transparent, real-time data, clear communication, and practical support. Without these, confusion spreads through manufacturers, distributors, and retailers and ultimately the patient waiting for vital medicine pays the price.
Here the responsibility does not rest with government alone. Trade associations, industry bodies, and professional councils must view this as social responsibility. We must ensure every wholesaler, retailer and software provider is aligned and compliant. The neighbourhood retailer is the heart of the supply chain. Shielding them from avoidable penalties and financial harm is a service to public health itself. Government must provide the tools and clarity. The trade and industry must uphold the spirit of reform and defend the credibility of the retail frontline, so that the patient does not suffer because of the GST 2.0 transition, Thirunavukkarasu said.
The Association also called for acceptance of GST stock-clearance returns for non-movable medicines, retailer support scheme, settlement of expiry, damaged and non-moving medicines and a formal clarification on composition dealers.
|