The National Pharmaceutical Pricing Authority (NPPA) issued an order dated 12.09.2025, directing all drug manufacturers and marketing companies to revise the Maximum Retail Price (MRP) of medicines whenever GST or any other tax/duty is reduced.

The objective is to ensure that the benefit of tax cuts is passed on to consumers, in line with the Drugs (Prices Control) Order, 2013 (DPCO) which mandates that MRPs of medicines are inclusive of all applicable taxes.

The order also clarified that recall, re-labelling, or re-stickering of unsold/released stock is not mandatory, but may be undertaken voluntarily by manufacturers subject to compliance with certain conditions.

The complete order can be accessed https://taxo.online/wp-content/uploads/2025/09/12092025_OM_National-Pharma-Pricing-Authority_GST-Reduction.pdf