Kolkata Medicine Supply Disrupted as Pharmacies Brace for GST Revision

Quick Summary

• GST Change Impact: Effective September 22, GST on all medicines will be reduced from 12% to 5%, with 33 lifesaving and three cancer drugs wholly exempted.
• Medicine Supply Delay: Pharmacies in Kolkata are delaying purchases of medicines with existing higher MRPs to avoid unsold stock ahead of the new GST implementation. Manufacturers are printing fresh prices on newer batches of medicines.
• Stock Dry-Up: Retail drug stores have low stocks as pipeline supplies diminish, and wholesalers will start delivering at revised rates post-September 22. It may take nearly a month for supply normalization due to price updates.
• Festive Delays: Restrictions on goods vehicle movement during Durga Puja could further delay medicine distribution across the state until after Lakshmi Puja.
• Administrative Challenges: Large pharmacy chains face hurdles in updating billing software for thousands of medicine variants post-GST change.

!Blip in Kolkata medicine supply ahead of GST change; pharmacies delay purchases, stocks to normalise

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Indian Opinion Analysis

The reduction in GST rates marks a significant effort toward enhancing affordability and accessibility for critical medications, notably lifesaving and cancer treatments. However, its transitional impact on the supply chain is evident as retailers try to avoid losses tied to older inventory while manufacturers update MRPs. Delayed purchases by pharmacists combined with the festive season vehicle restrictions might cause short-term disruptions to medicine availability.

These logistical challenges point toward an unavoidable adjustment period where coordination among government bodies, manufacturers, wholesalers, and retailers becomes crucial for minimising impacts on consumers requiring urgent medication during this period. Additionally, systematic support-notably user-kind templates or technological solutions-can reduce burdens faced by smaller pharmacies struggling with price updates across diverse drug inventories.

Once stabilized post-Lakshmi Puja,these changes could improve healthcare affordability substantially but navigating this transitional window efficiently remains a pressing priority for stakeholders managing both public health needs and economic implications within India’s pharmaceutical sector.