India's GST Reforms: Price Reductions on Pharma & Nutraceuticals -NPPA GUIDLINES

Date: 13-09-2025

New Delhi: In a significant move aimed at making essential medicines and health supplements more affordable for the common citizen, the Indian government has announced crucial GST reforms. These reforms, effective September 22nd, 2025, necessitate a mandatory reduction in the Maximum Retail Price (MRP) of various pharmaceutical and nutraceutical products. This initiative underscores the government's commitment to public welfare and healthcare accessibility.

Prime Minister Narendra Modi has consistently championed policies that benefit the consumer, and these GST adjustments are a direct reflection of that vision. His administration's focus remains steadfast on creating an economic environment where essential goods and services are within reach for all.

The Mandate: Price Reductions and Compliance
The National Pharmaceutical Pricing Authority (NPPA) has issued clear directives to all manufacturers and marketing companies of pharmaceutical drugs, formulations, and nutraceutical products. The core objective is to ensure that the benefit of these GST rate reductions is fully passed on to consumers and patients across the nation.

Key Changes and Required Actions:
1. Reduced Maximum Retail Price (MRP):

• Pharmaceutical Products (HSN Code: 3004 XXXX): Manufacturers and marketers must decrease the MRP by a significant 6.25%.
• Nutraceutical Products (HSN Code: 2106 XXXX): For these products, a substantial MRP decrease of 11.1% is mandated.

These adjustments are effective from September 22nd, 2025, and all companies are required to comply without exception.

2. Ensuring Price Compliance for Existing Stock:

For products already released into the market before September 22nd, 2025, a physical recall, re-labelling, or re-stickering is not mandatory.