Shimla patients get relief as new GST reforms reduce medicine prices by up to 10 per cent

Shimla (Himachal Pradesh) [India], September 26 (ANI): The Pharmaceutical companies and chemists in Shimla have begun implementing the revised GST night tariff on medicines, bringing much-needed relief to patients and the poor. Managers and pharmacy owners in the capital confirmed that the new reforms, effective as of September 22, have already reduced the prices of many essential and life-saving medications.

Mahesh Bisht, Manager at a pharmaceutical company, explained the changes, “From September 22, the new GST reforms and tariffs have come into effect. Items that were earlier under the 12% GST slab have now been reduced by 6.25% from the Maximum Retail Price (MRP). Similarly, in the 18% category, medicines are seeing a reduction of around 11.2%. Some items remain unchanged at 18%, but overall, patients are getting a benefit of about 6.2%.”

He added, “For example, if an item costs ₹100, consumers are saving ₹6.20 directly. We started executing this from the morning of September 22, and so far there have been no difficulties,” Bisht told ANI.

Chemists in the Lower Bazar area have also welcomed the move. Mukul Sood, a pharmacy shop owner, said. “We have implemented this across all retailers and dealers. On average, consumers will save about 10%. This is a commendable decision by the government, especially during the festive season. It will not only bring relief to people but also increase GST compliance.”

Sood added, “With lower rates, consumption is expected to rise, and government collections will eventually increase. Earlier, medicines were taxed in four slabs 12%, 18%, 5%, and 0%. Now, the 12% slab has been scrapped completely; most medicines are taxed at 5%, while insulin and many life-saving drugs are exempt from tax. Expensive drugs like cancer medicines have also become tax-free. Patients will see major benefits.”

Patients themselves confirmed the impact. Vijay, a consumer purchasing medicines, shared his experience, “Because of the new GST implementation, I am getting medicines at much cheaper rates. For example, a medicine that used to cost me ₹400 is now available at ₹356. This is a huge relief. The reforms have already started benefiting patients, and we are hopeful this will continue,” Vijay said.

Ashish Chandel, another representative from a pharmaceutical company in Lower Bazar, said his firm had also begun implementing the government’s directives from September 22.

“Most medicines that were taxed at 12% or 18% are now under the 5% slab, except a few cosmetics. For old stock, we are selling at a discount of 6.25% from the MRP. While we are awaiting clarity on the government’s input credit, we have already started executing the orders at the all-India level. Consumers are getting significant relief, especially on branded medicines that were earlier very costly. Prices have effectively dropped from 18% to 5%, and customers are noticing the difference immediately,” Chandel said.

The changes are expected to substantially reduce the burden on patients in Himachal Pradesh, particularly those requiring costly and long-term medication. Experts say this reform could transform affordability and also improve compliance in the pharmaceutical sector. (ANI)

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