Effects of GST on Pharmaceutical Industry in India
A major tax reform was introduced during 2017 in the form of Goods and Services Tax. Goods and services are bifurcated into 5 tax blocks for charging tax i.e., nil, 5 percent, 12 percent, 18 percent and 28 percent. India plays a dominant role in the pharma sector across the globe. The present review is undertaken with an aim to study the influence of GST on the Pharmaceutical industry in India. GST has resulted into negative as well as positive influence for the pharmaceutical industry in India.It has summed up eight different taxes charged previously into a single tax and eliminated five other indirect taxes. GST has enhanced the operational proficiency of pharma companies streamlining the supply chain. Free samples and discount offers will be charges with GST. However, the magnitude of positive influence is much higher than the negative ones. Moreover, the government has been consistently trying to alter the negative aspects of GST.
Keywords - Pharmaceutical Industry, GST, Indirect Tax