CDSCO allows relabeling old medicines stocks with revised MRPs

Through a recent notice, Directorate of General of Health Services, Central Drugs Standard Control Organisation (CDSCO), Ministry of Health and Family Welfare has clarified that pharmaceutical companies can relabel old stocks of their medicines with the revised Maximum Retail Prices (MRP) applicable following implementation of the Goods and Service Tax (GST) regime.

The notice implied that on receipt of representation received from FICCI dated 7.7.2017 on the subject Stickering of Pharmaceuticals as per Act and Rules relating to Goods & Service Tax (GST),this office has no objection for alteration of label (stickering) by the manufacturers under rule 104A of the Drugs and Cosmetics Rules, 1945, if required for implementation of GST subject to provisions of Legal Metrology Act & Rules and other provisions of Act and Rules relating to Goods & Service Tax.

In a circular last week the Ministry of Consumer Affairs, Food and Public Distribution had already stated that manufacturers, packers and importers of pre-packaged commodities should declare the post GST MRPs of unsold stocks which were manufactured, imported or packed before July 1.

There had been lot of confusion among chemist regarding selling price of medicine till now and they had been selling old stocks of medicines at their pre-GST MRPs even after implementation of GST on 1st July. Incidentally pharma companies were expected to declare the new MRPs on the batches they manufactured after July 1.

Attached below are relevant notifications concerning the issue.

http://www.cdsco.nic.in/writereaddata/NOTICEgst.pdf

http://consumeraffairs.nic.in/writereaddata/Impact of GST on unsold stock of pre-packaged commodities.pdf