The re-stickering process has already begun and it is most likely that the given deadline will be met
India’s central drug regulatory authority Drugs Controller General (India) DCG(I) has asked the pharma companies for price alteration (re-stickering) on essential medicines for treatment of diabetes and other diseases to avoid drug shortage in the market. Pharma companies have started re-stickering process and are likely to meet the given deadline of September 30, 2017.
Jagannath S Shinde, General Secretary- AIOCD, informed, “At present, we don’t see shortage of essential medicines in the market but manufacturers need some time for reflecting GST amended price on medicines. So far, no price revisions have been made on pre-GST stock of essential medicines.”
He added that since there was no price revisions on the essential medicines, we have not received any query from end consumers and are selling pre-GST stock on previous MRP only.
Anil Khanna, Partner, Wisdomsmith Advisors said, “The government has given a timeline to all manufacturers to liquidate their pre-GST stocks by September 30, 2017 for re-stickering the products. There is no need for further extension as the government has given enough timeline for it.”
It has been alleged that due to financial loss because of implementation of GST, the drug companies are not releasing their products into the market although stock of hundreds of crores are kept in godowns. The Central Drugs Standard Control Organisation (CDSCO’s) notice dated July 13, informs manufacturers for switching over to the new regime of GST smoothly so that medicines could be made available to the patients without any regulatory hurdles.
On the representation of industry associations like FICCI, IDMA, IPA and other regarding CDSCO has given permission to do alteration of labels (re -stickering ) due to implementation of GST.