GST rate cut on medicines from Sept 22: No need for re-labelling, prices to be updated via revised lists

If you are planning to buy medicines after September 22, 2025, here’s how the new Goods and Services Tax (GST) rate cut will impact your medical bills. The Central Board of Indirect Taxes and Customs (CBIC) has clarified that there will be no requirement to recall or re-label medicine stocks already in the supply chain before the new rates take effect.

Responding to concerns from consumers, chemists, and manufacturers, CBIC said the National Pharmaceutical Pricing Authority (NPPA) has directed all drug manufacturers and marketing companies to revise the Maximum Retail Price (MRP) of medicines and medical devices in line with the new GST rates.

Instead of recalling or re-stickering existing packs, companies will issue revised or supplementary price lists to dealers and retailers.

These updated lists will:

• Be displayed at pharmacies and retail outlets for consumer reference.


• Be sent to State Drug Controllers and the government for monitoring.

This ensures that consumers will benefit from the lower GST rates even if the medicine packs they purchase carry the older, higher MRP. The final billing at the counter will reflect the revised price.

The CBIC has also clarified that it will be the responsibility of manufacturers and marketing companies to ensure price compliance at the retailer level.

In short, starting September 22, patients will not have to worry about outdated MRPs on medicine strips—the reduced prices will automatically be applied at the time of purchase.

Also Read: GST Rate Cut: How does the Pharma, Medical Devices industry get impacted