Pharmaceutical companies will not have to recall or re-label medicines already available in the market before September 22, 2025, despite the recent reduction in Goods and Services Tax (GST) rates. The National Pharmaceutical Pricing Authority (NPPA), under the Department of Pharmaceuticals, has clarified that compliance can instead be ensured by updating prices at the retailer level.
In an official memorandum, NPPA stated:
“All manufacturers and marketing firms selling medicines and medical devices must revise the Maximum Retail Price (MRP) in line with the new GST rates. They must circulate revised or supplementary price lists to dealers, retailers, State Drug Controllers, and the government for consumer display.”
The Finance Ministry’s FAQs further explain that there is no requirement to recall, re-label, or re-sticker medicines already in circulation before September 22, 2025, provided companies ensure that retailers charge patients as per the revised price lists.
This clarification comes as a major relief for the pharmaceutical industry, which had raised concerns over the high costs and logistical hurdles of re-labelling stock. Allowing price adjustments through revised lists instead of physical re-labelling is expected to maintain business continuity, reduce supply chain disruptions, and ensure patients continue to have access to essential medicines without confusion.
The move follows recommendations of the 56th GST Council meeting held on September 3, 2025, which revised GST rates for multiple goods and services, including pharmaceuticals. The NPPA’s intervention ensures these tax changes are smoothly implemented within the drug pricing system.
