NEW DELHI: The All India Organisation of Chemists and Druggists (AIOCD), which represents over 1.25 million chemists and distributors nationwide, has welcomed the Union Government’s historic GST 2.0 reform, calling it a milestone in making healthcare affordable and accessible.
The organisation expressed its gratitude to Prime Minister Narendra Modi and the Government of India for the decision.
Key Benefits of the Reform
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GST on medicines has been reduced from 12% and 18% to 5%, offering significant relief to patients.
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Cancer and life-saving drugs have been made completely tax-free, ensuring critical treatment becomes more affordable.
According to AIOCD, this sensitive and visionary step not only demonstrates the government’s concern for patient welfare but also strengthens the overall healthcare system for millions of Indians.
AIOCD Commitment
AIOCD President J. S. Shinde and General Secretary Rajiv Singhal reaffirmed the organisation’s full support for the reform, pledging transparency in passing on GST benefits directly to patients.
“Our chemists will ensure smooth nationwide implementation, reaffirming our motto — Patients First & Always,” they said in a joint statement.
The organisation announced several initiatives for effective implementation:
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Awareness campaigns: Nationwide distribution of posters and informational material at pharmacies to educate patients about the GST benefits.
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Industry coordination: Continuous engagement with pharmaceutical companies, software vendors, and state associations to ensure uniform rollout.
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Guidance to members: Support for managing both old and new Maximum Retail Price (MRP) adjustments during the transition.
AIOCD’s Appeals to the Government
While extending full cooperation, AIOCD also urged the government to address certain industry concerns:
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Refund/adjustment of Input Tax Credit (ITC) on old stock to ease the financial burden on traders.
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A 90–120 day protection period during the transition phase until new low-MRP stock becomes available, to safeguard chemists against penal action for inadvertent errors.
Chemists as the Bridge Between Reform and Patients
Highlighting their role in healthcare delivery, AIOCD noted that with over 1.25 million chemists serving 1.4 billion citizens daily, the fraternity stands shoulder-to-shoulder with the government in ensuring the reform’s success.
The organisation stressed that its ultimate aim is to ensure patients directly experience the benefits of reduced GST on medicines and tax exemptions on life-saving drugs.
