New delhi. The All India Organisation of Chemists & Druggists (AIOCD), representing over 12.5 lakh chemists and distributors across the country, has submitted a memorandum to the Hon’ble Finance Minister, Smt. Nirmala Sitharaman, requesting urgent measures to protect small URD and Composite retailers and chemists from losses. A copy of the memorandum is enclosed.
AIOCD President J. S. Shinde and General Secretary Rajiv Singhal highlighted the key points of the memorandum regarding the practical difficulties and financial losses faced by small URD and Composite traders:
* The reduction in GST rates (18% to 5%, 12% to 0%, 12% to 5%) has benefited consumers, but it has severely impacted the financial position of small traders.
* Stock purchased by unregistered and composite dealers at higher GST rates now has to be sold at lower prices, leading to unavoidable losses, especially when drug margins are regulated by NPPA.
* Most small URD and Composite traders are either not registered under GST or are composite dealers who cannot claim Input Tax Credit (ITC).
* AIOCD has requested the Government to allow small URD and Composite traders to sell their existing stock at the old MRP for a period of three months. If necessary, a special relief package should be announced, and during this transition period, no harassment or penal action should be taken against small retailers.
AIOCD has warned that if immediate relief is not provided, many small URD and Composite chemists may be closed, which will certainly affect the availability of medicines in rural and remote areas — a responsibility that will fall upon the Government.
The Organisation has urged the Government to act swiftly to safeguard the backbone of India’s retail drug trade, which is being overlooked during this historic reform