No mandatory relabelling of pre-revised GST stock, NPPA offers ease of compliance to industry

GST rate cut

In a major relief to pharma and medical devices industry, India’s drug pricing regulator has issued a directive allowing manufacturers of pharmaceuticals and medical devices to avoid mandatory relabelling of products following a GST rate cut.

In an office memorandum dated September 12, the National Pharmaceutical Pricing Authority (NPPA) clarified that companies can continue selling pre-GST stock without re-stickering, provided they ensure price compliance at the retail level through revised price lists and public communication. The directive emphasizes that manufacturers must revise MRPs effective September 22, and communicate changes via electronic, print, and social media.

The NPPA’s move, led by Chairman P. Krishnamurthy, reflects a shift toward balanced regulation that supports both consumer interests and industry viability. GST on all medicines and medical devices was reduced from 12% to 5% and granting nil rate to 36 vital life-saving drugs.

“This is a timely and pragmatic step by the Government that addresses an important operational challenge,” said Rajiv Nath, Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD). “It ensures compliance, consumer transparency, and prevents wastage of packaging material.”

The NPPA directive follows consultations with AiMeD and other industry bodies, which had raised concerns about the feasibility of relabeling billions of low-cost, high-volume medical disposables. The regulator’s decision to allow a voluntary relabeling mechanism and a transition period until December 31, 2025, is expected to save costs and prevent supply chain disruptions.

“We urge all industry members and stakeholders to strictly comply with the guidelines and issue prompt public notifications to ensure transparency and consumer trust,” Nath added.

The Central Drugs Standard Control Organisation (CDSCO) also issued a parallel notification permitting importers and manufacturers of Class C and D medical devices to affix revised MRP stickers within three months, further easing the transition.