Will Prices Drop Even if Medicine Packs Show Old MRP From September 22 On GST Cut? | Business News

Last Updated:September 16, 2025, 18:08 IST

NPPA clarifies no recall or re-labelling needed for medicines in supply before September 22, 2025, after GST cut.

News18

The National Pharmaceutical Pricing Authority (NPPA) has clarified that medicines and medical devices already in the supply chain before September 22, 2025, will not require recall or re-labelling.

Importantly, the NPPA has stated that recalling, re-stickering, or re-labelling packs already released into the market is not mandatory. The key requirement is that manufacturers and marketing companies ensure that the revised prices are applied at the retail level. This move aims to protect consumers from overpaying while avoiding disruption in medicine availability.

This comes after the GST council-led by Finance Minister Nirmala Sitharaman announced to cut GST on drugs and devices to 5 per cent from 18 per cent.

According to the NPPA, all manufacturers and marketing companies must revise the Maximum Retail Price (MRP) of drugs and formulations, including medical devices, in line with the recent GST reduction. Companies are required to issue revised or supplementary price lists, in Form V or VI, to dealers and retailers. These updated price lists must also be shared with State Drug Controllers and the government to ensure transparency and compliance.

In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a “historic Diwali gift” for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.

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Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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