Chemists flag ‘unequal burden’ under GST 2.0, seek urgent relief measures

The Bangalore District Chemists and Druggists Association (BDCDA) has claimed that they have been “left orphaned” in the process of rollout of GST 2.0 from September 22, even as manufacturers and wholesalers are cushioned through flexible compliance norms.

Under the revised GST structure, sweeping reductions in tax slabs and mandatory adjustments to maximum retail prices (MRPs) have been introduced. While manufacturers can opt to update price lists and wholesalers receive extended credit periods and additional discounts, retail chemists are required to re-price every medicine individually, directly interfacing with consumers and managing compliance on the ground, the association said.

“GST 2.0 places the heaviest operational load on chemists,” BDCDA president B. Thirunavukkarasu said. He highlighted that approximately 40% of retailers remain unorganised, lacking digital systems to manage sudden price revisions. Consequently, many face losses by selling pre-GST stock at newly reduced MRPs, absorbing the full margin difference.

In an emergency appeal to J.S. Shinde, president of the All India Organisation of Chemists and Druggists (AIOCD), BDCDA requested several measures, including the acceptance of GST stock-clearance returns for non-moving medicines, a uniform 3% trade discount across the supply chain during the transition period, among others.