The National Pharmaceutical Pricing Authority (NPPA) by an Order dated 20th August 2020, fixed the retail prices of specified formulations. The prices are fixed for each unit of the formulation based on its strength and the corresponding manufacturers & marketing companies as are specified.
These retail prices do not include any goods or service taxes (GST) that may be applicable to the formulations. The manufacturer can subsequently add GST only if they have actually paid GST or it is payable to the Government on the retail price that is fixed.
The manufacturers of the specified formulations i.e. ‘new drugs’ in terms of the Drugs (Price Control) Order (DPCO), 2013 must fix the retail price as is determined by this Order. The Order contains a list of 29 such formulation or new drugs.
The retail price for a pack of these formulations will be determined by the manufacturers based on the retail price fixed for the unit of the formulation. The retail prices of a pack must be arrived at in accordance with the provisions of DPCO, 2013.
Manufacturers are required to issue a price list in Form–V as per the provisions of DPCO, 2013. This form must be submitted to NPPA through the Integrated Pharmaceutical Database Management System (IPDMS). A copy of the form must also be submitted to the State Drug Controller and dealers.
Furthermore, all retailers and dealers are required to display the price lists and the supplementary price lists, if any, furnished by the manufacturer. These lists must be displayed on a conspicuous part of their business premises, in a manner that is easily accessible by all persons wishing to consult them.
Additionally, the retail prices fixed by this Order are applicable only to the individual manufacturer/marketer as are specified. These are manufacturers who have applied for price fixation/revision by submitting Form-I as stipulated under DPCO, 2013.
If retail prices fixed by this Order for any of the specified formulations are not complied with, the concerned manufacturer/marketing company will be liable to deposit the overcharged amount along with the interest thereon.
