India’s pharmacy sector is open to constant regulatory updatings, especially on pricing as well as compliance issues. One of the significant directives on September 11, 2025, by the Jharkhand Drugs Control Department came in the wake of a change in the Goods and Services Tax (GST). The directive allows pharma and medical equipment companies to revise the maximum retail price (MRP) of their unpurchased stocks but under regulated conditions and within a limited timeline.
This step follows a Ministry of Consumer Affairs (MoCA) circular dated September 9, 2025, that provided states with the impetus to take action in the wake of GST amendments. The Jharkhand DC has now followed this directive with stern instructions to safeguard consumer interest while enabling companies to manage unsold inventory based on tax changes.
Regulatory Background
The order issued by the Jharkhand Drugs Control Department falls under Rule 33 of the Legal Metrology (Packaged Commodities) Rules, 2011. This rule prescribes a legal procedure for revising MRPs if statutory charges such as duty or tax are altered by the government.
Sumant Kumar Tiwary, Jharkhand Drugs Control Department’s Joint Director, elaborated that all medications, scheduled or non-scheduled, and medical devices as categorized by the drugs under the Drugs and Cosmetics Act, 1940, will be addressed through the circular. The inclusion of both scheduled and nonscheduled formulations renders this order equally effective to all of the state’s pharmaceutical and medical device industry.
Time-Bound Permission for MRP Revision
The most important aspect of the new directive is the fact that it has a specific time frame. The update of MRPs has been authorized only up to December 31, 2025, or the use of the available stock, whichever comes first.
This means that companies cannot keep revising MRPs at their convenience in the guise of GST adjustments. They must be responsible and quick-footed during the window. No retrogressive changes on the inventory after this deadline will be entertained, thus rendering the directive temporary yet necessary relief.
Scope of the MRP Revision
The Jharkhand DC made it clear that the revised MRPs must be strictly limited to the amplitude of the change in the GST rate. Companies cannot use this window to increase prices beyond the gap caused by GST changes.
The order instructs that:
- The original MRP must continue to appear on the pack.
- Revised MRP can only be placed through stamping, sticker, or online print.
- At no point can companies provide non-GST rate-related price hikes that are not applicable.
This ensures patients and consumers are not left with unplanned price increases in the guise of GST changes.
Transparency in Communication
To prevent lack of transparency, the directive demands manufacturers and marketers to provide public notice of the new prices. The notices must be provided in at least two newspapers so that the information trickles down to lots of individuals.
Additionally, the companies should inform the parties in the supply chain, including:
- Stockists
- Distributors
- Hospitals
- Retail pharmacies
- E-commerce platforms
Duplicates of those notices also need to be submitted with the state controller of legal metrology and the office of the Joint Director of Drugs Control. The two-report mechanism ensures a check on accountability and regulatory accountability.
Preventing Consumer Exploitation
The directive takes its origin in the policy of protecting consumers’ rights. By directing that the original MRP be shown and only partial modifications be allowed, the Jharkhand DC intends to prevent any form of exploitation of consumers.
Hospitals, pharmacies, and online portals have been issued specific directions to modify their systems and billing patterns to incorporate the new MRPs. The move has been made to avoid billing mistakes and consumer grievances during the initial phase of implementation.
The transparent notifications also guarantee patients buying drugs during this window will not be in a position of uncertainty regarding price fluctuations. The emphasis is placed on consumer well-being, transparency, and justice.
Monitoring and Inspections
The Drugs Control Department has announced joint visits by legal metrology officials and drug inspectors. The visits will be carried out in:
- Pharmacies
- Hospitals
- Wholesale depots
The purpose of such inspections is to ascertain that revised MRPs are strictly as per GST modifications and not used for profiteering.
Any overcharging or unjustified price hikes will be dealt with under the provisions of the:
- Legal Metrology Act, 2009
- Drugs (Prices Control) Order, 2013
- Drugs and Cosmetics Act, 1940
This reflects the seriousness of state governments in enforcing conformity and protecting consumers.
Compliance Deadlines
It has been ordered that all pharmaceutical companies and medical device manufacturers in Jharkhand must submit compliance reports by October 2025.
Such a mandate will help ensure that firms are punctual, warn the stakeholders beforehand, and maintain a record in a proper manner. Delays or non-compliance can invite strict regulatory action.
Strict Penal Action for Misuse
The Jharkhand DC has categorically warned that the relief under GST will face stringent penal action for any attempt to abuse it for profiteering. The directive reaffirms the government’s stance that the facility is only for adjustment to the extent of tax change and not for inflationary price hikes.
By aligning penalties to multiple acts — Legal Metrology, DPCO, and Drugs and Cosmetics Act — the department has created a robust enforcement framework. The multi-dimensional legal umbrella leaves no room for exploitation by any supply chain player.
Relevance to the Pharma Industry
For the pharmaceutical and medical devices industry, this directive is both an opportunity and a responsibility. On one hand, it provides relief to companies holding unsold stock after GST amendments. On the other hand, it imposes strict checks to ensure consumer protection.
The directive highlights the delicate balance regulators must maintain: enabling industry operations while safeguarding patient interests. It reflects a governance approach that prioritizes transparency, compliance, and fairness.
Conclusion
The Jharkhand Drugs Control Department’s circular on MRP revisions of medicines and medical devices after GST amendments is a landmark directive for the state’s healthcare and pharmaceutical ecosystem.
By allowing revisions only up to the extent of GST changes, mandating transparency through newspaper notices, enforcing visibility of original MRPs, and planning joint inspections, the directive ensures that consumer rights remain at the forefront.
The deadline of December 31, 2025, makes it clear that this is a temporary but necessary relief measure. Pharmaceutical companies must act responsibly, submit compliance reports by October 2025, and ensure that no misuse occurs under the guise of GST adjustments.
With strict penal provisions in place, the directive sends a strong message: consumer welfare and regulatory compliance cannot be compromised.