Chemist Body Seeks Transition Period, GST Input Adjustment After Tax Cut, Writes to CM
New Delhi: The Retail Distribution Chemist Alliance (RDCA) has written to the Delhi government, seeking urgent relief measures to manage the impact of the recent Goods and Services Tax (GST) reduction on medicines from 12% to 5%, effective September 22, 2025.
In a representation dated September 06, 2025, addressed to Delhi Chief Minister Rekha Gupta and Finance Minister, RDCA welcomed the GST reduction as a “positive step for patients” but flagged serious concerns for the trade.
“The reduction of GST on medicines from 12% to 5% w.e.f. 22nd September 2025 is a welcome step for patients. However, it has created heavy accumulation of GST inputs and unsold higher-cost stock with pharmacies, causing immediate financial stress,” the RDCA wrote.
Two Key Demands from Chemists
To ensure uninterrupted supply of medicines during this transition, the association proposed two specific interventions:
Transition Period: A 3-month window to allow depletion of old MRP stock purchased at higher tax.
Input Adjustment Mechanism: A clear framework within 6 months for adjusting accumulated GST inputs to prevent losses for small and mid-sized pharmacies.
“These timely relief measures will protect the pharma trade and ensure uninterrupted patient care in Delhi,” the letter emphasised.
Representation from RDCA
The representation was submitted by RDCA President Sandeep Nangia, who is also Organising Secretary of the All India Organisation of Chemists and Druggists (AIOCD). A copy of the letter has also been sent to AIOCD’s Mumbai headquarters.
RDCA represents a large network of retail chemists in the capital. By escalating the matter to AIOCD, the national body of chemists, the association has highlighted that the issue is not limited to Delhi but could impact medicine supply chains across India if left unaddressed.
The GST reduction follows a decision by the GST Council to lower tax on 33 lifesaving drugs, including cancer medicines, to make essential treatments more affordable for patients. While patients are expected to benefit from lower prices, traders argue that the sudden shift without a transition mechanism places financial strain on pharmacies holding higher-tax inventory.
As of now, the Delhi government has not issued any response to RDCA’s demands.
