GST Impact in PCD Pharma Franchise Products and Industry

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GST IMPACT IN PCD PHARMA FRANCHISE PRODUCTS AND
INDUSTRY
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GST is a reality from the 1st of July 2017. As
they say you can love it, or you can hate it,
but you cant ignore it GST is the part and
partial of Indian economy.  The government has
been quite severe and sensitive about the
implementation of it, and many steps have been
taken to make it more balanced and fairer.
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• According to the Goods and Service Tax, every
  franchise business is covered under the act.
• Hence, if you are a business owner of
  budding pharma franchise India, then it is
  essential that you gather the required
  information about GST.

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The tax structures and slabs
In the past two decades, the pharma sector has
performed exceptionally good. Due to the
increasing awareness about health and wellness,
and growth in the economy the industry has
outperformed.  Amongst various business models,
the pharma franchise model is easy to launch and
profitable.
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• Since the pharma industry contributes to almost
  5 percent of the total GDP in India, it is
  impossible to ignore it.
• And more importantly, the substantial chunk of
  this is added by the small-scale entrepreneurs.
• In the initial provisions, the tax slabs were
  Nil, 5,12,18 and 28 percent.
• However, after consolidation, they are now
  reduced to Nil, 5 percent and 12 percent.

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Impact of GST

• There had been some confusion and distress about
  GST initially because of the complex nature of
  the business.
• For examples, companies purchase active
  pharmaceutical ingredients with custom tax favor
  or integrated GST. 

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• Some companies operate in special economic
  zones. 
• The marketing products, discount schemes or free
  drug samples have a different impact.
• They are part of the supply chain. 
• There is a visible impact on MRP or trade value.
  
• In some cases, the earlier tax percentage was
  lesser as compared to the GST applicable now. 

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• Thus, the franchise business has to bear a loss.
  The loss is higher if the medicine falls under 12
  percent category. 
• However, it cant be generalized. In some cases,
  the GST has come down than the earlier compounded
  tax slab. 
• Those who want to start PCD pharma company
  India need to know the tax slab applicable. It
  helps to do the business planning better.

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For More info Read Our Blogs GST IMPACT IN PCD
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A PROFESSIONAL BUSINESS FRANCHISE OF A PHARMA
COMPANY IN INDIA? WHAT IS THE KEY REQUIREMENT
FOR A PCD PHARMA FRANCHISE COMPANY IN INDIA?
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• Visit Our Website- https//irenepcdpharma.in/
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• Address- 151- Shahjanand Estate, Ahmadabad,
  Gujarat, India, 382210