Chemists' Body Seeks Input Tax Credit Refund, Protection Period Amid GST 2.0 Rollout
Mumbai: The All India Organisation of Chemists and Druggists (AIOCD), representing over 1.25 million chemists and distributors across the country, has warmly welcomed the historic GST 2.0 reform while simultaneously urging the Government to provide relief measures that will ease the transition for traders.
The reform reduces GST on medicines from 12% and 18% to 5%, while cancer and life-saving drugs have been made completely tax-free. Calling this a “sensitive and visionary decision,” AIOCD expressed gratitude to Prime Minister Narendra Modi and the Government, noting that the step reflects deep concern for patients’ welfare and marks a milestone in making healthcare more affordable and accessible.
At the same time, the association has appealed for refund or adjustment of Input Tax Credit (ITC) on old stock to mitigate cash-flow pressures on traders. It has also sought a 90–120 day protection period until new low-MRP stock becomes available, to protect chemists from penal action in case of inadvertent billing errors during the transition.
AIOCD President J. S. Shinde and General Secretary Rajiv Singhal said, “AIOCD wholeheartedly supports this historic and visionary decision and is fully committed to ensuring its smooth implementation across the country. Our chemists will transparently pass on these benefits directly to patients, reaffirming our motto – Patients First & Always.”
To ensure a smooth rollout, AIOCD has announced initiatives including nationwide distribution of awareness posters at pharmacies, coordination with pharmaceutical companies, software vendors, and state associations for uniform implementation, and member guidance on handling both old and new MRPs effectively during the adjustment period.
With over 1.25 million chemists serving 1.4 billion citizens face-to-face every day, AIOCD has affirmed that it stands shoulder to shoulder with the Government to implement GST 2.0 successfully and deliver its benefits directly to patients.
