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AIOCD expresses gratitude to PM for GST relief on medicines, seeks support on key issues
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Peethaambaran Kunnathoor, Chennai
September 23 , 2025
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The All India Organisation of Chemists & Druggists (AIOCD), the apex body representing around 12 lakh chemists and distributors across the country, has welcomed the government’s recent decision to reduce GST on life-saving drugs from 12 per cent to 5 per cent and to exempt several other essential medicines, calling it a compassionate move that will benefit millions of patients.
In a letter addressed to Prime Minister Narendra Modi, and signed by AIOCD president J S Shinde and general secretary Rajiv Singhal, the association praised the PM for his ‘visionary leadership’ and termed the reforms a ‘transformative step’ for the healthcare sector. The association noted that the pharmaceutical trade is a deeply committed and sensitive sector and assured the Centre of its proactive role in ensuring smooth implementation of GST 2.0 reforms. It added that the AIOCD has already initiated awareness programs with companies, software vendors, and state associations to ease the transition.
While expressing its gratitude, the AIOCD also flagged two major issues that need urgent government intervention. The first request is for a transitional protection window of 90 to 120 days for retailers. This proposed safeguard would prevent penal action for minor errors while new MRP-labelled stock reflecting reduced GST rates reaches chemist shelves, ensuring a smoother transition for stakeholders.
The second concern relates to the issue of blocked Input Tax Credit (ITC) refunds. In a separate representation, the association sought a suitable mechanism to refund or adjust ITC on old stock, citing Sections 55 and 89 of the relevant tax laws. According to the AIOCD, such a step is crucial to address liquidity stress among traders, without which their ability to serve patients effectively may be impaired.
In line with the government’s ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ vision, the AIOCD has also designed posters for retail pharmacies to display. These posters, highlighting the benefits of GST reforms, aim to create transparency with consumers and demonstrate the industry’s alignment with government policy.
General secretary Rajiv Singhal pointed out that chemists interact daily with crores of people, placing them in a unique position to convey the government’s commitment to making medicines more affordable. He said the reforms not only bring relief to patients but also strengthen trust between citizens and policymakers.
By combining appreciation with constructive suggestions, the AIOCD has set a collaborative tone in its engagement with the Centre. The trade body’s call for transitional relief and resolution of blocked ITC issues reflects the ground-level challenges faced by the trade, even as it lauds the government’s reformative steps to make healthcare more accessible to all.
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