The National Pharmaceutical Pricing Authority (NPPA) has issued a notification revising the ceiling prices for scheduled formulations. This action aims to regulate drug prices in the country and it takes into consideration the Wholesale Price Index (WPI) impact @0.00551% for the year 2024. These notifications were issued on August 7, 2024.
Price Fixation for Scheduled Formulations
The ceiling prices specified are exclusive of GST and apply to the respective dosage forms, strengths, and units detailed in the entries.
Drug companies that manufacture scheduled formulations must lower their prices if they’re currently charging more than the new ceiling price set by the government. This ceiling price doesn’t include Goods and Services Tax (GST). Companies can sell their brand-name or generic versions of these medications, but neither can exceed the ceiling price once it’s added to any applicable GST.
However, if a company is already selling these controlled medications for less than the new ceiling price, they can continue to do so.
Compliances Arising From Price Fixations:
Inclusion of GST
The manufacturers may add goods and services tax only if they have paid actually or if it is payable to the Government on the ceiling price.
Furnish Price List to NPPA, Drug Controller and Dealers
The manufacturer shall issue a price list in Form–V from date of Notification to NPPA through IPDMS and submit a copy to State Drug Controller and dealers.
Display of Price Lists
Every retailer and dealer shall display price list and the supplementary price list, if any, as furnished by the manufacturer, on a conspicuous part of the premises where he carries on business in a manner so as to be easily accessible to any person wishing to consult the same.
These measures represent NPPA’s ongoing efforts to ensure affordability and accessibility of essential drugs for the Indian population. The new prices will be effective upon their final publication, marking a significant step towards regulating pharmaceutical pricing and promoting public health interests.
