BDCDA Seeks Nationwide MRP Uniformity with Flat 7% GST on Medicines

PharmaGenDRx News Bureau- 30th August, 2025

4:00 PM IST

The Bangalore District Chemists & Druggists association (BDCDA) has urged the Union Finance Minister, Nirmala Sitharaman, to introduce a rationalized Goods and Services Tax (GST) structure for the pharmaceutical sector. In its representation, the association called for a uniform 7% GST on the printed maximum Retail Price (MRP) of all medicines under the “One Nation, One tax” model.

Currently, GST is calculated on the transaction value after discounts not on MRP. This has led to inflated MRP values while offering excessive discounts, distorting the real value of medicines. According to BDCDA, this mechanism not only reduces genuine tax collection but also disrupts fair trade and promotes unregulated pricing practices.

The association advised that adopting 7% GST directly on MRP would lead to fair trade practice. BDCDA emphasized that this would lead to transparency in ethical pricing and uniformity across the nation.

By Sharon Bose & Arundhuti Chatterjee