Though the Goods and Services Tax (GST) bill passed by the central government has given some relief to pharma sector from the hassles of multiple tax regimes by streamlining the taxation system into a uniform tax, the industry is still feeling that there are issues that are disturbing them.

“No doubt, GST is a revolutionary reform with regard to abolishing multiple taxation. But when it comes to implementation, manufacturers and exporters are facing procedural and policy issues. To address these issues we are organizing an interactive meeting with members of GST Commission from Hyderabad on 3rd November. All members should utilise this opportunity to get their doubts cleared on GST,” informed Raghuveer Kini, executive director of Pharmexcil.

According to experts, since the launch of GST from 1st of June, the input costs for the pharmaceutical manufacturing companies have increased due to imposing of GST on raw materials. “Since the launch of GST, pharmaceutical companies are paying more in manufacturing cost as raw material costs have gone up by 7 per cent. However the output costs are remaining same as there is no change in the Maximum Retail Price (MRP) of the product. This is causing loss for the companies,” said Jayanth Tagore, Ex-BDMA President.

Having received many complaints and suggestions relating to GST from member exporters, Pharmexcil has brought the same to the notice of the GST Council and Local GST commissionerate members in Hyderabad. And Pharmexcil has decided to conduct an interactive meeting to alley all the doubts regarding GST. “Though already the GST Council has addressed some issues, there are still some policy as well as procedural issues to be addressed, particularly on exports front,” said the ED.

Mr. P Naresh Penumaka, Principal Commissioner, GST Commissionerate, Hyderabad is expected to take part as the Chief Guest of the meeting. The interactive event is expected to be conducted at Forum-I at Aditya Park Inn at Ameerpet in Hyderabad. Interested members can register their names before 1st November 2017.