After the implementation of Goods and Services Tax (GST), the pharmaceutical sector grew 6 percent on a year-on-year basis till May 31, Minister of State for Chemicals and Fertilisers Mansukh Mandaviya said Thursday. “Before GST, annual turnover of the Pharma Sector (as on 31.05.2017) was Rs 1,14,231 crores while after GST, the annual turnover of Pharma sector (as on 31.05.2018) touched Rs 1,31,312 crores, which is 6 percent higher than the Pre-GST regime,” he informed.
Exports from Pharma sector during 2016-17 were Rs 2,75,852 crores while post-GST, in the year 2017-18, they were recorded at Rs 3,03,526 crores, which is 10 percent higher than the Pre-GST Regime. The Minister added that as per estimates, the export figure for the current year is likely to be Rs 3,27,700 crores, which will be almost 12 percent higher than the export figure of Pre-GST regime (2016-17). Further, it was informed that there has been a significant jump in number of Drug Approvals from 7,857 before GST (01.07.2016 to 30.06.2017) to 10,446 post-GST (01.07.2017 to 30.06.2018).
Mandaviya informed that due to discontinuation of Central Sales Tax post-GST, it will reduce transaction costs, as inter-state transaction between two dealers will become tax neutral. Now, the pharma companies can consolidate their warehouses at strategic locations, effecting a reduction in cost of distribution. As a result, it will benefit warehouse strategy and improve supply chain efficiency in pharma sector, the minister explained.