Background

The Central Drugs Standard Control Organisation (CDSCO) has issued an order following the government’s decision to rationalize the Goods & Services Tax (GST) rate structure, which has resulted in a reduction of GST rates on drugs and formulations. To ensure a smooth transition for implementing the new prices, the authority has permitted a provisional measure for relabeling products.

• Permission for Stickering: In exercising powers under the Drugs and Cosmetics Act, 1940, the Central Licensing Authority (CLA) has stated it has no objection to the affixing of stickers with the revised Maximum Retail Price (MRP).
• Applicability: This permission applies to all importers as well as manufacturers of class C and D medical devices.
• Timeline for Compliance: Stakeholders are permitted to affix these stickers for a period of three months from the date of the order (September 11, 2025) to implement the GST changes.
• Direction to State Authorities: The Drugs Controller General (India) has also issued a directive to all State and Union Territory Drugs Controllers, requesting them to expedite the process of issuing “no objection” for the alteration of labels (via stickering) by manufacturers to reflect the new GST rates.
• Reporting Requirement: State authorities have been asked to communicate the action taken in this matter to the Directorate General of Health Services