Although state government has implemented the VAT regime in Maharashtra from today, the transactions by wholesale drug traders have come to a standstill as the government has not notified the new tax rules. The wholesale traders, mostly supplying drugs to interstate locations, are in a dilemma as they have no clue at what price they should prepare bills for the consignments.

Though the government is learnt to have issued the notification stating the new tax structure and the tax adjustment on the stock purchased till March 31, neither the traders nor the trade associations have got the copy of the same yet.

The traders who are in panic as many urgent consignments are being held back due to the confusion, had even contacted the state revenue department to get an idea about the changed tax structure. The officials are equally puzzled as they neither saw the notification nor aware of the details, it is learnt.

According to Hemendra Shah, director, Royal Chemists, a leading drug wholesale and retail company in Mumbai, the traders are worried that if they continue preparing bills at the old rates, it may attract a fine or penalty. Similarly, the traders who have a paperless office wherein the accounting programmes are made with old tax rates cannot issue the bills.

Shah said that the Association, Pharmaceutical Wholesalers Association (PWA) had advised that the traders can deduct 4 per cent on the old stock and make sales in the absence of the notification. But this can create problem for the consignments going to the states where VAT is not implemented. "In such a situation, the traders have no other option but to temporarily stop sales. This has caused non delivery many urgent orders of even emergency drugs, especially to important hospitals, undelivered yet," Shah added.