There are lots of apprehensions on proposed Goods & Service Tax (GST) across the sectors, but pharmaceutical industry in Gujarat is bullish about it and eagerly awaiting for implementation of GST.
Over the past one decade more than 50 drug manufactures shifted their base from Gujarat to three tax heaven States–Himachal Pradesh, Uttaranchal and Sikkim. However, once GST would be implemented, most of these units are expected to return to Gujarat.
In the wake of recent announcements on the roll, the Gujarat pharmaceutical industry is anticipating a sense of optimism touching the sector, said Viranchi Shah, President of Indian Drug Manufacturers Association (IDMA).
In the upcoming seventh edition of Pharmac India, GST will be the major subject of discussion as India moves towards the GST regime, a level playing field and smooth taxation norms will give a major boost to greenfield and brownfield investments,” said Shah.