J&K Patients Still Face High Medicine Prices Despite GST Cuts

Patients in Jammu and Kashmir (J&K) have yet to see any benefits from recent reductions in Goods and Services Tax (GST) on medicines, despite the cuts being implemented over a month ago. Life-saving drugs are now tax-free, and general medications are said to be cheaper, but delayed price revisions mean that chronic patients continue to pay the same prices as before.

The GST reforms, announced during the 56th GST Council meeting on September 3, 2023, reduced taxes on various medicines from 12 percent to 5 percent. Additionally, 36 life-saving drugs were completely exempted from taxes. This change was effective from September 22, 2023, and was aimed at making essential medications more affordable for consumers.

In theory, this could translate to significant savings. For instance, life-saving drugs like insulin, tuberculosis (TB) medications, and cancer therapies now have a 0 percent GST, potentially cutting costs by up to Rs 120 on a Rs 1,000 drug. Similarly, general medicines such as antibiotics and those for diabetes and hypertension now carry a 5 percent GST, down from 12 percent, meaning that a Rs 100 medicine strip should now cost approximately Rs 93 after the reduction.

Despite these reductions, many consumers in J&K report that they are still paying the old prices for their medications. Bashir Ahmed, a resident who purchases hypertension medications weekly, expressed frustration: “I don’t know about GST, but the Rs 115 strip costs the same as before. The revised GST rates have not made it cheaper.” Similarly, Shafiya Jan, who has been on anti-diabetes medications for seven years, noted that the price of her medicine has increased from Rs 27 to Rs 52 since she began using it.

The J&K Drug and Food Control Organisation (DFCO) and the National Pharmaceutical Pricing Authority (NPPA) have mandated that retailers revise their Maximum Retail Prices (MRPs). They have recommended using stickers on existing stock and publishing updated price lists to ensure that consumers benefit from the new pricing structure.

Atal Dulloo, the Chief Secretary of J&K, recently launched a seven-step protocol aimed at enforcing compliance with these pricing changes. This includes conducting 150 awareness camps to educate both consumers and retailers about the revised prices.

Arvind Sharma, the Assistant Commissioner for Drug Control in Jammu, stated that the department has not received any complaints about price discrepancies. “I can say with confidence that in Jammu, pharmacists are passing on the GST benefit to consumers,” he said. He added that the department is actively conducting inspections and monitoring the billing practices of medical shops. “If there is a violation, people must report to us,” he assured.

In contrast, the situation in Kashmir appears to be less clear. The Assistant Controller of Drugs in Srinagar, Reema Gazala, did not respond to inquiries regarding the enforcement of the new pricing rules.

Nationally, a recent survey indicated that only 22 percent of Indian consumers have experienced full GST relief on medicines, suggesting that J&K is not alone in facing this issue. The delayed price adjustments for medications are having a significant impact on patients, particularly those with chronic health conditions who rely on consistent access to affordable medicines.

As the situation evolves, it remains crucial for both consumers and regulatory bodies to ensure that the intended benefits of the GST cuts are realized, allowing patients in J&K to access necessary medications at more affordable prices.