PANJIM: The GST is playing havoc with the software systems of some pharmacies in Goa as it repeatedly hangs, causing hardship for those wanting to buy medicines.
A pharmacist in Panjim said he was experiencing trouble because his systems were crashing and he did not know whether to sell medicines at the old rate or the new rate which would go above the maximum retail price. For wholesales it has meant losing their entire margin and for retailers a fifty percent cut in theirs.
In a decision taken pharmacies in the State will be bearing a loss on each and every sale they make as they sell the old stock they are holding. This is expected to take over a month and the trade association has decided to not pass on the 7 percent hike due to GST.
Albert Dsa, President of Chemist and Druggist Association of Goa said, “95 percent of the products are available in the market. Sales have not been affected, the odd brand is not available and it is not by design. The stock may have not come or the principals did not have the raw materials, nothing else”.
Manufacturers in other industries have offered to share the burden following the increase due to GST but according to Dsa, pharmaceutical companies have sent them vaguely worded letters which claim that if they buy “x” amount of stock, they may consider
assisting them in dealing with the loss. He said wholesalers had lost their entire margin while retailers would lose 50 percent of the margin. The parent body in Delhi, he said, had made an appeal to the central government but no response was forthcoming as yet. He said the trade was stuck because they could not sell over the MRP.
Prasad Tamba, outgoing President of the Chemist and Druggist Association, said it was important to understand the mathematics involved. He said many pharmacies stocked medicines as well as toiletries. On medicines the increase was from 7 percent to 12.5 percent and for toiletries it was from 12 percent to 28 percent, which meant the loss being suffered was gigantic. On toiletries he said the margin was usually 5 percent which was now wiped out. The trade, he felt, would have to just bear this till the old stocks run out. All this would be sorted out once the new stock post June 30 is purchased.
