New delhi. The All India Organisation of Chemists and Druggists (AIOCD), representing 12.40 lakh chemists and distributors nationwide, has appealed to Hon’ble Finance Minister and GST Council Chairperson, Smt. Nirmala Sitharaman Ji, to bring all medicines under the 5% GST slab and place critical life-saving medicines under the 0% GST (exempted) category.
Welcoming Hon’ble Prime Minister Shri Narendra Modi Ji’s Independence Day announcement on GST rationalization, AIOCD President J S Shinde and General Secretary Rajiv Singhal emphasized that chemists are the last-mile healthcare providers directly interacting with 140 crore citizens, and any increase in medicine bills directly affects patients.
AIOCD’s Key Demands:
1. Essential medicines regulated under DPCO must not face additional tax burden.
2. All medicines, vitamins, probiotics, nutritional & food supplements, and baby food must fall under 5% GST.
3. Medicines for cancer, kidney, cardiac diseases, chronic/rare disorders, and blood derivatives should be placed under 0% GST.
4. Ayurvedic medicines must not face higher taxation after the abolition of 12% GST slab.
5. Preventive medicines and micronutrient supplements should remain affordable in line with “Prevention is better than Cure.”
6. With the 12% GST slab being abolished, all medicines currently in that slab must shift to 0% or 5%.
7. Clear guidelines must be issued to apply revised GST rates on stock purchased under the higher slab.
Shinde and Singhal reiterated that medicines are not luxury commodities but lifelines. Reducing GST will directly ease the burden on millions of patients and families, especially those without health insurance.
A copy of the memorandum and a separate letter has also been sent to Hon’ble Deputy Chief Minister of Bihar and President of Council of Ministers, Shri Samrat Choudhary Ji, seeking his support.
AIOCD expressed confidence that the forthcoming GST Council deliberations will deliver a compassionate, historic decision—prioritizing humanity over hardship.
For All India Organisation of Chemists and Druggists (AIOCD)
J S Shinde Rajiv Singhal
President General Secretary
Key Points of AIOCD Memorandum
AIOCD the National medicines trade body Appeals for Reduction of GST on Medicines
* AIOCD, with 12.40 lakh chemists and distributors across India, appeals for listing all medicinal preparations including profalactic in the 5% GST slab.
* AIOCD appreciate Hon’ble Prime Minister’s announcement on 15th August for rationalization of GST to benefit consumers.
•Central Government listed 2817 formulations in Essential medicines under DPCO 2013. 27 therapeutic areas are covered .
Objective is to make medicines Affordable .
*Over 90 % priced controlled medicines are currently in 12% slab ,with provisions of 16% retail margins .
* Prescriptions are generated with medicines and allied essentials such as probiotics, vitamins, nutritional & food supplements, and baby food should be included in 5% GST slab.
* Critical & life-saving medicines (Cancer, Kidney, Heart, Chronic disorders, Rare diseases, Blood derivatives, Controlled drugs, and Birth-control medicines should be exempted. ( 0 %GST slab.).
* Ayurvedic medicines : widely used as primary & a large segment of qualified doctors prescribed these medicines, need to protect from higher taxation due to abolition of 12% GST slab.
* Preventive & prophylactic medicines : supplements essential for prevention; higher taxation will discourage early health protection.
“Prevention is better than Cure ” doctrine has been accepted worldwide.
* With merger of 12% slab, all medicines should be shifted either to 0% or 5% GST slab to reduce burden on patients.
This will reduce cost burden on those paying out of pocket, secondly insurance premiums may also go down .
* Transitional and existing stock clarification :
Clear guidelines required for GST credit adjustment on stock purchased under higher slab.
* Public Welfare Governance :
Reducing GST on medicines will ease burden on patients paying out-of-pocket, support un insured citizens, and reflect Government’s commitment to health, dignity & well-being.