GST: Medicine prices remain same across drug stores in Kolkata

KOLKATA: On the first day of GST, medicine prices remained unchanged across drug stores of Kolkata. With most manufacturers failing to deliver the new price lists, retailers chose to stick to the existing tax rates. Even though it came as a huge relief for consumers who were expecting a steep price rise, panic buying continued since supply remained slow.According to the Bengal Chemists’ and Druggists’ Association, medicines will continue to sell at pre-GST prices since a complete switchover to the new tax regime was likely to take another week.
“The new price lists have started coming in. While 10-15 manufacturers have sent out the lists to retailers, the rest are yet to compile them. Unless we have all the drugs covered, it won’t be fair to charge the new rates. Also, retailers are still working on altering software to incorporate the new GST rates in their bills,” said Subodh Ghosh, general secretary of the association. He added that the old prices could continue for another week.
Each retailer will need a provisional GST number to start charging the new rates. But not more than 2% has received the number so far. What has left consumers and retailers worried, though, is the fact that supply has stopped altogether from Saturday. “While the supply had come down to a trickle last week, it has now come to a dead stop. We are carrying on with old stocks which would last barely another week. In fact, several drugs will be short of requirement by Monday. But since distributors are yet to receive fresh stocks with the post-GST prices, we can only wait and watch,” said Ramkrishna Jana, owner of Ramakrishna Pharmacy on Rashbehari Avenue.
Several common drugs like Dupact, Optisulin and Stamlo 5 have been short in supply since last week. Most pharmacies were left grappling with further depleted stocks on Saturday. With a crisis looming large, drug stores continued advising long-term patrons to stock medicines. “Those who need regular medication would do better to stock some drugs now. With supply cut off completely and the new price lists yet to arrive, we have no idea when things are going to turn normal. It could take another week or may be even longer,” said Sanjay Majumdar, owner of The Pharmacy, a drug store in New Alipore.
GST has four tax slabs for medicines - nil, 5%, 12%, 18% and 28%. While some have been exempted from tax, a few have been included in the life-saving category which will now attract a tax of 5%. Around 90% of drugs will taxed at 12% while some food protein medicines will have an 18% tax.