Lok Sabha Question No. 1317 (UNSTARRED), answered on 2021-07-27
Subject: Price Reduction of Drugs
Ministry: CHEMICALS AND FERTILIZERS
Asked by: M. K. Raghavan

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF PHARMACEUTICALS

LOK SABHA UNSTARRED QUESTION NO. 1317 TO BE ANSWERED ON 27 th  July, 2021

## Price Reduction of Drugs

## 1317. SHRI M.K. RAGHAVAN:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether National Pharamaceutical Pricing Authority (NPPA) makes any efforts to stabilize the pharmaceutical prices in the country;
- (b) if so, the details thereof;
- (c) whether the NPPA has asked Pharma manufactures to reduce the prices on medicines in lieu of reduction in GST by the Government; and
- (d) if so, the details regarding the same and the list of medicines for which prices have been reduced?

## ANSWER

## MINISTER IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SHRI MANSUKH MANDAVIYA)

(a) & (b): Yes, National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals  fixes  /  revises  the  ceiling  prices  of  the  scheduled  formulations  as  per  the provisions  of  the  Drugs  (Prices  Control)  Order,  2013  (DPCO,  2013).  Further,  NPPA  also monitors the Maximum Retail Price (MRP) of scheduled formulations so as to ensure that the MRP of such formulations are within the range of ceiling price and  that of non-scheduled formulations to ensure that MRP does not increase by more than 10% of MRP during the preceding  twelve  months.  The  details  of  ceiling  /  retail  prices  fixed/revised  by  NPPA  are available on NPPA's website,  www.nppaindia.nic.in.

(c) & (d): NPPA has issued detailed guidelines on 13 th April, 2016 for compliance of revised prices  by  the  manufacturers  /  marketing  companies  due  to  change  in  the  Tax/  GST  rates. Recently, the GST Council in its 44 th meeting held on 12 th  June, 2021 has reduced GST on goods  being  used  in  COVID-19  management.  A  copy  of  the  press  release  issued  by  the Ministry of Finance indicating the details of medicines and medical devices used for COVID management, on which GST rates were revised, is enclosed. In order to pass the benefit of reduction in GST rates to the consumers, NPPA has issued instructions on 15 th June, 2021 to all the manufacturers and marketing companies of drugs/formulations and medical devices to revise the MRP of drugs/formulations on which Tax/GST rates have been reduced. A copy of OM dated 15 th June, 2021 of NPPA is enclosed.

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## 44 th  Meeting of the GST Council 12 th  June, 2021

***

## PRESS RELEASE

## (Change in GST Rates on GST on goods being used in Covid-19 management)

The  GST  Council  in  its  44 th meeting,  held  on  12 th  June,  2021  through  Video Conference, decided to reduce the GST rates on the specified  items being used  in Covid-19 relief and management till 30 th  September, 2021, as detailed below, -

| S. No.                                                             | Description                                                                                                               | Present GST Rate                                                   | GST Rate recommended by GST Council                                |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
| A. Medicines                                                       | A. Medicines                                                                                                              | A. Medicines                                                       | A. Medicines                                                       |
| 1.                                                                 | Tocilizumab                                                                                                               | 5%                                                                 | Nil                                                                |
| 2.                                                                 | Amphotericin B                                                                                                            | 5%                                                                 | Nil                                                                |
| 3.                                                                 | Anti-Coagulants like Heparin                                                                                              | 12%                                                                | 5%                                                                 |
| 4.                                                                 | Remdesivir                                                                                                                | 12%                                                                | 5%                                                                 |
| 5.                                                                 | Any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment | Applicable Rate                                                    | 5%                                                                 |
| B. Oxygen, Oxygen generation equipment and related medical devices | B. Oxygen, Oxygen generation equipment and related medical devices                                                        | B. Oxygen, Oxygen generation equipment and related medical devices | B. Oxygen, Oxygen generation equipment and related medical devices |
| 1.                                                                 | Medical Grade Oxygen                                                                                                      | 12%                                                                | 5%                                                                 |
| 2.                                                                 | Oxygen Concentrator/ Generator, including personal imports thereof                                                        | 12%                                                                | 5%                                                                 |
| 3.                                                                 | Ventilators                                                                                                               | 12%                                                                | 5%                                                                 |
| 4.                                                                 | Ventilator masks / canula / helmet                                                                                        | 12%                                                                | 5%                                                                 |
| 5.                                                                 | BiPAP Machine                                                                                                             | 12%                                                                | 5%                                                                 |
| 6.                                                                 | High flow nasal canula (HFNC) device                                                                                      | 12%                                                                | 5%                                                                 |
| C. Testing Kits and Machines                                       | C. Testing Kits and Machines                                                                                              | C. Testing Kits and Machines                                       | C. Testing Kits and Machines                                       |
| 1.                                                                 | Covid Testing Kits                                                                                                        | 12%                                                                | 5%                                                                 |
| 2.                                                                 | Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH                                            | 12%                                                                | 5%                                                                 |
| D. Other Covid-19 related relief material                          | D. Other Covid-19 related relief material                                                                                 | D. Other Covid-19 related relief material                          | D. Other Covid-19 related relief material                          |
| 1.                                                                 | Pulse Oximeters, incl personal imports thereof                                                                            | 12%                                                                | 5%                                                                 |

|   S. No. | Description                                                                     | Present GST Rate   | GST Rate recommended by GST Council   |
|----------|---------------------------------------------------------------------------------|--------------------|---------------------------------------|
|        2 | Hand Sanitizer                                                                  | 18%                | 5%                                    |
|        3 | Temperature check equipment                                                     | 18%                | 5%                                    |
|        4 | Gas/Electric/other furnaces for crematorium, including their installation, etc. | 18%                | 5%                                    |
|        5 | Ambulances                                                                      | 28%                | 12%                                   |

These rate reductions/exemptions shall remain in force up to 30 th  September 2021.

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