The prices of greater part of essential drugs is set to increase by 2.29% due to rise in tax incidence levied on them. Earlier, drugs were charged at 9% at rate however under GST, drugs have been placed in 12% tax slab.
The national list of essential medicines comprises of Heparin, Warfarin, Diltiazem, Diazepam, Ibuprofen, Propranolol and Imatinib.
However, the GST Council lowered the tax rate of insulin from the earlier proposed rate of 12% to 5%. This decision would beneficially affect the prices of insulin as pharma companies would be required to reduce the maximum retail price of the said drug.