Medicine stocks thin, pharma industry confused ahead of GST roll out

KOLKATA: The July 1 roll out date of Goods and Services Tax (GST) has led to a temporary negative impact on the medicine business as most of the dealers are unsure of the pricing of medicines under the new regime.
Stockists, distributors and sellers are not buying new stock of medicines as there is confusion on whether they have to pay a higher tax of 12% instead of the existing 5% on the old stock.This has adversely affected the availability of medicines in the local shops.
Especially there is shortage of blood pressure, blood sugar and cholesterol- related medicines.
To add on to this confusion, many pharmaceutical companies have advanced their monthly book closing date to 24-26 June from 30 June. Also, these companies are giving the medical representatives a paid leave so that the daily allowance can be curtailed.
President of All West Bengal Sales Representatives' Union, Mr Asish Kumar Ghosh said, "The effect of GST on medicine business is so grave that many young workers may lose their job and layoffs have already started."
General Secretary of Bengal Chemist and Druggist Association, Sri Subodh Ghosh said, "The crisis has just begun. According to the GST rules, all medicines having HSN code are to be sold. But it's practically impossible for all the companies to provide with this code."
All these have been brought to the knowledge of State's Health Secretary Rajendra Shankar Shukla and Drug Controller Chintamani Ghosh.
BCDA President Sankha Roychowdhury is of the opinion that all crisis have cropped up due to the unavailability of proper infrastructure. He has blamed the Centre's unnecessary hurry for the situation.
Report: Anirban Ghosh
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