Along with automobiles and FMCG products, the prices of health related goods and services are also going to be reduced from 22 September. The government has clearly asked the company’s manufacturing medicines and medical equipment to give the benefit of GST reduction to the consumers from 22 September itself. Along with this, the new rate of GST will come into effect from 22 September.

Jagran Bureau, New Delhi. Along with automobiles and FMCG products, prices of health related goods and services are also going to be reduced from 22 September. The government has clearly asked the company’s manufacturing medicines and medical equipment to give the benefit of GST reduction to the consumers from 22 September itself.

GST rates were also reduced

In the GST Council meeting held on September 3, it was decided to reduce the GST rates on more than 70 medicines or keep them out of the ambit of GST. Similarly, the GST rates on various equipment and health services were also reduced.

The new GST rate will be implemented from 22 September. All medicines and equipment falling under the 12 percent category will now attract only 5 percent GST. Drug manufacturing companies were expressing their inability to change the old stock and minimum retail price (MRP) in such a short time.

Consumers should get the benefit of reduction in medicine prices

On this, the National Pharmaceuticals Pricing Authority (NPPA) has told all the drug manufacturing companies that they do not need to take back the old stock or medicines from the dealer to change the prices of the medicines, but the customers should get the benefit of reduction in the price of the medicines from September 22 at any cost.

For this purpose, the manufacturing companies have been asked to inform their dealers and retail drug sellers through advertisements. The new selling price of the drugs and medical equipment on which GST has been reduced has been directed to be sent to the dealers before 22 September.

Insurance companies also benefit from GST reduction

It has been decided to abolish the 18% GST on life and health insurance from September 22 and many insurance companies have already started giving this benefit to the customers.

Insurance companies are telling customers that they do not need to pay GST for insurance that is activated after September 22 and their billing is being done after removing the GST. But if the insurance coverage is started before September 22, then the payment will have to be made at the old rate only.

GST will not be levied on renewal

If the date of renewal of insurance of a consumer is after 22nd September, then GST will not be levied on renewal. But if the date of renewal is before 22nd September and the consumer pays for it after 22nd, then also he will have to pay GST.

 PC:Jagran