Ayurvedic medicines to cost more despite reduced GST rates

Though the Centre has reduced the GST rate of unbranded ayurvedic medicines from 12 percent to 5 percent, the Ayurveda drug manufacturers say the price of the product would not come down.

Published: 10th October 2017 01:32 AM  |   Last Updated: 10th October 2017 08:05 AM   |  A+A-

By Express News Service

THIRUVANANTHAPURAM: Though the Centre has reduced the GST rate of unbranded ayurvedic medicines from 12 per cent to 5 per cent, the ayurveda drug manufactures say the price of the products would not come down.  According to the amended rates, five per cent GST benefit will be available only if the labels in the products are free of manufacturers’ name, emblem or any colour. However, Ayurvedic Medicine Manufacturers Organisation of India general secretary Dr D Ramanathan said no product can be brought out in the market without the manufacturers’ name or emblem, which is violation of  Drugs and Cosmetics Act. There was a possibility of levying huge fine if these are not included, he said. 

As per the new rates fixed, the drug will be considered as branded and 12 per cent GST should be given if the products come with such things in the labels. When excise duty was imposed in 1994 for the drugs, products that came with company name and emblem were considered to be generic drugs. Ramanathan has requested the Kerala Finance Minister and the Ayush Minister to reconsider the present GST levied on ayurveda products. He said 95 per cent of the drug manufacturing companies were not big ones and as such the new amendment in GST was not going to have any impact on the industry. He requested to reinstate the tax that was levied on Ayurveda drugs before the GST rates came into force.

Stay up to date on all the latest Kerala news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp