All India Organisation of Chemists and Druggists seeks 0% GST on life-saving medicines

DIMAPUR — The All India Organisation of Chemists and Druggists (AIOCD), representing 12.40 lakh chemists and distributors across the country, has appealed to Finance Minister and GST Council Chairperson Nirmala Sitharaman to bring all medicines under the 5% GST slab and to place critical life-saving medicines under the 0% GST (exempted) category.

According to a press release issued by AIOCD, the appeal follows Prime Minister Narendra Modi’s Independence Day announcement on GST rationalisation.

AIOCD President J S Shinde and General Secretary Rajiv Singhal stated that chemists are the last-mile healthcare providers directly interacting with 140 crore citizens, and any increase in medicine bills directly affects patients.

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The organisation’s key demands include: essential medicines under the Drug Price Control Order (DPCO) must not face additional tax; all medicines, vitamins, probiotics, nutritional and food supplements, and baby food should fall under 5% GST; and medicines for cancer, kidney and cardiac diseases, chronic or rare disorders, and blood derivatives should be exempted from GST.

AIOCD has also called for ayurvedic medicines not to be subjected to higher taxation following the abolition of the 12% GST slab, while preventive medicines and micronutrient supplements should remain affordable in line with the principle of “Prevention is better than cure”.

With the merger of the 12% GST slab, AIOCD has urged that all medicines previously under this slab be shifted to either 0% or 5% GST and has sought clear guidelines on applying revised GST rates to existing stock purchased under the higher slab.

The organisation also sent a memorandum and a separate letter to Bihar Deputy Chief Minister and President of the Council of Ministers, Samrat Choudhary, seeking his support.

AIOCD expressed confidence that the upcoming GST Council deliberations would deliver a compassionate and historic decision, prioritising patients’ welfare and easing the burden on millions of families, particularly those without health insurance.