The Bangalore District Chemists and Druggists Association (BDCDA) has voiced strong concerns, asserting that its members feel abandoned as the GST 2.0 rollout approaches on September 22. They argue that while pharmaceutical manufacturers and wholesalers are shielded by flexible compliance mechanisms, retail chemists are left to shoulder an ‘unequal burden’ through this transition.
The updated GST framework introduces sweeping reductions in tax slabs and mandates immediate adjustments to Maximum Retail Prices (MRPs). Manufacturers have the option to update their price lists, and wholesalers benefit from extended credit periods and additional discounts. In stark contrast, retail chemists are individually tasked with repricing every medicine, directly engaging with consumers, and managing on-the-ground compliance, as highlighted by the association.
B. Thirunavukkarasu, president of BDCDA, emphasized that “GST 2.0 imposes the heaviest operational load on chemists.” He pointed out that approximately 40% of these retailers operate without the necessary digital systems to handle sudden and extensive price revisions. This situation often forces many to sell their existing stock, acquired before the GST changes, at the new, lower MRPs, thereby absorbing the entire loss in profit margin themselves.
In response to these pressing issues, BDCDA has lodged an emergency appeal with J.S. Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD). Their requests include crucial measures such as allowing returns for non-moving pre-GST medicines and implementing a consistent 3% trade discount across the entire supply chain during this transitional period, among other vital concessions.