New Delhi, Nov 8 (KNN) The pharma industry in the country have raised concerns demanding an exemption on expired and damaged medicines under the newly rolled out Goods and Services Tax (GST).

Indian Pharmaceutical Alliance (IPA) in a statement said that the exemption of GST on expired and damaged stock of medicines is vital to prevent losses for the pharma industry.

On returning damaged and expired stocks of medicines to the companies, chemist needs to raise and invoice and charge GST on it which increases the burden.

D G Shah, director-general of the IPA said that the association had written to the GST council regarding the matter that GST should be exempted on date-expired and damaged stocks, which are returned by the retail chemist to the pharmaceutical companies.

The director-general further said that the GST on the damaged and expired stocks have been costing about Rs. 500 crore per annum to the pharmaceutical industry.

Shah noted that being an important issue of the industry, it must be looked on a serious note by the government immediately.

Himanshu Shah, Secretary, MP Small Scale Drug Manufacturers Association told KNN that the demand of IPA is valid and the unsold expired and damaged medicines should be returned to the pharmaceuticals along with the GST refund.

Shah also said that with GST in place on expired and damaged goods , retailers have not been accepting the new goods , they wanted to settle down the old and expired  goods with the pharmaceuticals  first and hence, manufacturers have to bear losses because GST has already been paid on the damaged goods. (KNN/AG)