GST 2.0 comes in to effect from 22 september 2025 and for medicines there is a reduction of prices from the MRP. There will be a confusion as still only old MRP rates will be printed on tablet strips, tonic, syrups. It will take some time before manufacturers apply stickers of new MRP. So customers should be wary of this assue and ask for more discount from the retailer or medical shop owner or in other words pharmacy store. Most of the general medicine have a tax cut from 12 percent to 5 percent and 18 percent to 5 percent and we will be explaining how to ask for a better price from the retailer. Some of the products MRP remain unchanged and these are for beauty creams, lotions (skincare) as the still remain in the 18 % bracket without change. Cancer and other critical illness medicines cost has been reduced as the tax on these medicines becomes zero
PHARMACY RETAILER MRP REDUCTION TO CUSTOMERS DISCOUNT PERCENTAGE
This article is only for customers on how to check for reduced prices from 22-09-2025 onwards as the MRP rates on products will be the same for some time until changes take place.
First of all the MRP has the tax within the value.
The most confusing scenario is that the tax on beauty and skin care creams have not been reduced and there is no point in asking for a less mrp. for example, skin care creams and lotions like venusia, evion, elovera et.all bear the same MRP even after gst 2.0. So expect no price reduction from skin care lotions and creams.
MRP calculation GST 2.0 on medicines tablet, syrup form pharmacy retailer to customer sale
Now with the price of medicines (both in the form of tablets in strips and liquid syrups in bottles) which are consumed orally have been reducted from their earlier tax of 12 & 18% to flat 5 percent, there will be a reduction in MRP price for which the customer can claim or in other words, the retailer or the pharmacy store should sell at a reduced price.
As old MRP rates will be printed and the new rates printing or labels will not be available immediately from 22nd sep 2025, the customer or the retailer will have to calculate the new price from the MRP
12 % 18% to 5% tax change tablets syrup new MRP Calculate retailer to customer
From 22 September 2025 onwards customer should be aware of the gst 2.0 tax benefits available as MRP is reduced from tomorrow.
Most products i.e tablets and syrups are in the 12 percentage slab not reduced to 5 percent (mrp printed is old as of now)
EXAMPLES
IF MRP OF STRIP OF TABLETS OR ON SYRUP IS SAY “X”, MULTIPLY THE VALUE WITH 0.9375
SO IF THE MRP PRINTED IS 500 RUPEES MULTIPLY WITH .9375 (500*.9375)=468.75 WILL BE THE NEW MRP (mrp multiplied by 0.9375)
THE RETAILER MUST GIVE TO CUSTOMER OR THE BUYER OF MEDICINE SHOULD ASK THE RETAILER OR PHARMACY STORE. THER IS ONE MORE POINT TO REMEMBER. THE RETAILERS BY DEFAULT GIVE A 10 PERCENT DISCOUNT ON A CERTAIN PURCHASE LIMIT AND THIS DISCOUNT MUST BE CALCULATED FROM REVISED MRP CALCULATION ONLY.
18 % GST MEDICINE PROTEIN POWDERS MRP CHANGES CALCULATION
There is a huge reduction in taxes from 18 percent to 5 percent for protein powders and other products used as health suppliments in the form of powders and some tablets (multivitamins) that earlier were in eighteen percentage tax slab now come under 5 percent only
CALCULATION – LETS SAY OLD MRP = ” X ” THE NEW MRP WILL BE (X*.08898) mrp multiplied by 0.8898
IF THE MRP IS 1000 RUPEES, THEN NEW MRP WILL BE 889.80.
Examples of medicines changed to 0% tax
All cancer medications used in chemotherapy and other critical illness prices will be reduced and the customers have the right to claim this price reduction. on the other hand even the sellers (retailer, pharmacy stores) should bear the responsibility to provide customers with reduced prices and not that as printed from tomorrow till new labelels are provided by manufacturers.
THE NEW MRP FOR CANCER MEDICINES IS (“X”* 0.89286) i.e. mrp multiplied by 0.89286