GST reduced: Delhi drug control dept directs manufacturers to revise MRPs by Sept 22

By Admin

18 Sep, 2025

The Delhi Drugs Control Department has issued a directive asking pharmaceutical drug and medical device manufacturers to revise the Maximum Retail Price (MRP) of their products in line with the recently reduced Goods and Services Tax (GST). The move follows the decisions taken during the 56th GST Council meeting held earlier this month.

Circular Highlights

In its circular dated September 17, the department stated that the revised GST structure will come into effect from September 22, 2025. All manufacturers and marketers of drugs, formulations, and medical devices located within Delhi’s jurisdiction must update their MRPs accordingly.

The circular further clarified:

“All the manufacturers and marketer of drugs, formulations & medical devices located in the jurisdiction of Delhi are required to revise the Maximum Retail Price (MRP) of drugs, formulations and medical devices as per revised GST rate w.e.f. 22.09.2025.”

Label Updates Made Easier

To simplify the transition, the department has permitted companies to alter product labels through stamping or stickers rather than reprinting the entire packaging. This measure will only be applicable for updating MRPs to reflect the revised GST rate, and not for changing any other details on the label. Companies must, however, obtain a no-objection certificate (NOC) from the State Licensing Authority before implementing these changes.

Ensuring Smooth Supply Chain Compliance

Manufacturers have been asked to take proactive measures to ensure that every stakeholder in the supply chain   right down to the retailer level   complies with the revised MRP. The department emphasized a phased implementation approach to avoid any product shortages in the market during the transition period.

Retailers and Wholesalers Also Accountable

The directive does not stop at manufacturers. Retailers and wholesalers have also been instructed to update their billing systems, including any online billing software, to align with the revised GST rates effective September 22, 2025.

Wide Circulation for Compliance

To ensure strict adherence, the circular has been distributed to the Drugs Controller of Delhi, the Manufacturer Association of Delhi, and the Chemist Associations of Delhi. This wide communication aims to leave no room for ambiguity in the implementation of the revised GST structure.

Conclusion

The reduction in GST and the subsequent directive from the Delhi Drugs Control Department mark a significant step toward easing costs for patients and consumers. By mandating revisions in MRPs and ensuring compliance across the supply chain, the government aims to pass on the benefits of tax reductions directly to the end-users.