Close Look at GST: Pharma sector yet to sync fully with the new regime

The GST regime is expected to bring a great boost to the pharmaceutical industry by making the supply chain management efficient and reducing the cost of manufacturing pharmaceutical products. The reduction in the costs will get added to the profit margins which is a good thing for manufacturers.

Pharma sector yet to sync fully with the new regime: There was much con fusion at chemists shops across the city.While many shops failed while issuing bills to customers, very few pharma outlets like Medplus (that has both online and physical stores) outlet were able to issue bills with clear indicators on the GST added.

Rekha Chowdhury, who bought her mother s regular medicine at a chemist s shop in south delhi, had pay 12%GST to what medicines cost. “The store issued me a bill with clear indicator on how much was charged for state GST and Central GST. It s 6% each and to tally I paid 12% GST,” said Rekha.

While some shops issued bills adding the state and central GSTs, some shops did not issue bills on July 1. Not all chemists shop and even smaller clinics have not linked their systems with the GSTN. “We re still confused.I m unable to give bills to my customers and selling at the MRP rate,” said a chemist from Delhi.

Stating that at present there are some shops which are billing GST while some others are not, he added: “Shops with a turnover more than Rs 5 lakh are billing GST and those with less turnover are not. It s becoming difficult for us to explain this to customers as they too are confused about the next system.”

Click here to Continue Reading

For more updates visit HarNeedi.com