The National Pharmaceutical Pricing Authority (“NPPA”) in its Order dated 13th December, 2019 has revised ceiling prices for 21 formulations under para 19 of Drugs (Price control) order 2013 in addition to the 12 formulation already being considered.
The key highlights of the Order are as follows:
The Drug formulations whose prices have been fixed include Benzathine benzylpenicillin, Chloroquine, Dapsone, Furosemide etc these drugs are used as first line of treatment and are crucial to the public health program of the country. Since many companies have applied for discontinuation of the product on account of unviability and in order to ensure availability of drugs NPPA has made an upward revision of the ceiling prices of the twenty one scheduled formulations of 12 drugs by giving one time increase of 50% from the present ceiling price
Therefore All manufacturers of scheduled formulation, selling the branded or generic or both the versions of scheduled formulations at a price higher than the ceiling price (plus goods and services tax as applicable) so fixed and notified by the Government, shall revise the prices of all such formulations downward not exceeding the ceiling price specified in column (5) in the above table plus goods and services tax as applicable, if any.
The manufacturers are required to add Goods and Services Taxes (“GST”) only if they have paid actually or if it is payable to the Government on the retail price mentioned in the table annexed with the Order.
Every retailer/ dealer are directed to display price list and the supplementary price list, if any, as furnished by the manufacturer, on a conspicuous part of the premises where the retailer/ dealer carries on business in a manner so as to be easily accessible to any person wishing to consult the same
The manufacturers of above said scheduled formulations are required to furnish quarterly return to NPPA, in respect of production/import and sale of scheduled formulations in Form-III of Schedule-II of the DPCO, 2013 through IPDMS and the manufacturers not complying with the ceiling price and notes specified hereinabove shall be liable to deposit the overcharged amount along with interest thereon under the provisions of the Drugs (Prices Control) Order, 2013 read with Essential Commodities Act, 1955.
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