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Jharkhand DC issues guidelines on MRP revisions of medicines post-GST amendments
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Peethaambaran Kunnathoor, Chennai
September 11 , 2025
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In response to the Ministry of Consumer Affairs (MoCA) circular dated September 9, 2025, the drugs control department in Jharkhand has issued a formal directive allowing pharmaceutical and medical devices companies to revise maximum retail prices (MRP) on unsold stock in light of Goods and Services Tax (GST) rate changes.
The circular falls under Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011 and has implications for both scheduled and non-scheduled formulations in the state, said Sumant Kumar Tiwary, joint director of the department.
The JDC confirmed that all medicines, whether under price control or not, as well as medical devices classified as "drugs" under the Drugs and Cosmetics Act, 1940, are covered under this MRP revision provision. However, he clarified that the permission to revise MRPs applies only until December 31, 2025, or until existing stocks are exhausted, whichever is earlier.
The directive outlines clear conditions for MRP revision, emphasizing that the revised price must be limited strictly to the extent of the GST rate change. The original MRP must remain visible on the packaging, and any revised MRP may only be applied through stamping, stickers, or online printing. The JDC warned that any unjustified price hikes under the pretext of GST adjustment would be dealt with severely under the Legal Metrology Act, 2009, Drugs (Prices Control) Order, 2013, and Drugs and Cosmetics Act, 1940.
The notification mandates that manufacturers and marketers must issue public notices through at least two newspapers and inform stockists, distributors, and regulatory authorities. Copies of such communications are to be submitted to both the state controller of legal metrology and the office of the joint director of drugs control, to maintain transparency and regulatory compliance.
In an effort to prevent consumer exploitation, all hospitals, retail pharmacies, and e-commerce platforms operating in the state must be duly informed about the revised prices. This measure aims to avoid consumer grievances and ensure smooth transition in billing and pricing practices amid GST adjustments.
The drugs control department has also planned joint inspections by drug inspectors and legal metrology officials across pharmacies, hospitals, and wholesale depots to verify that any MRP changes strictly correspond to the GST variation. Cases of overcharging will be taken up under both consumer protection laws and drug control provisions.
All pharmaceutical companies and medical device manufacturers operating in Jharkhand have been directed to submit compliance reports by October 2025. Any attempt to misuse this GST-linked relaxation to undertake profiteering will lead to strict penal action, the directive stated, reaffirming the state’s commitment to consumer welfare and legal enforcement.
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