Price control mechanism for life-saving drugs
As informed by Department of Revenue, Specified Drugs, Medicines and vaccines attract 5% GST and Other medicines, in general attract 12% GST. Serial No.173 to 181 of notification No. 1/2017-Central Tax (Rate) provides 5% GST on specified drugs and medicines. The associated list of drugs and medicines is available at (https://egazette.nic.in/WriteReadData/2017/176965.pdf Page No.239-306).
Further, as informed by Department of Pharmaceuticals, pursuant to notification of the National Pharmaceutical Pricing Policy (NPPP) on 7th December, 2012, the Government has notified the Drugs (Prices Control) Order, 2013 (DPCO-2013) with an objective to put in place a regulatory framework for pricing of drugs so as to ensure the availability of essential medicines at reasonable prices.
As per provisions of DPCO, 2013, the ceiling price of all scheduled formulations figuring in the National List of Essential Medicines (NLEM) issued by the Ministry of Health & Family Welfare are fixed by the National Pharmaceutical Pricing Authority (NPPA) under the Department of Pharmaceuticals. All manufacturers of these scheduled drugs are required to sell their products at a price equal to or lower than the ceiling price. Further, NPPA monitors the prices of non-scheduled drugs so as to ensure that increase in their Maximum Retail Price (MRP) is not more than 10% of what was prevalent during the preceding twelve months. The details of various medicines and medical devices under price control is available at the website of NPPA, i.e., www.nppaindia.nic.in.
The Union Minister of State for Health and Family Welfare, Dr. Bharti Pravin Pawar stated this in a written reply in the Rajya Sabha today.