It has just been a month after the GST has been implemented. However, even today, the stock of medicines has not seen any stabilization. The chemists based in Delhi have informed that they have not felt too comfortable with the concept of staking their shelves with medicines. This is because, the incentives that they were so used to receive, now does not exist anymore.
Most of the companies are not willing to compensate for the losses that they have incurred due to the distributors. As a result, the dealers are turning towards the retailers to offset the loss. A chemist based in east Delhi said in confusion.
Everywhere the chemists notice a shortage of drugs. This too in the numbers of the daily used drugs. The stockiest are forced to maintain a limited inventory. The stock that they keep now would only run for three weeks. This is being done to recover the loss which they have faced in the month of June. The inventory days have risen to 22 days in the month of July. Earlier it had been 17 days.
The stock of antibiotic is piling up and the inventory days have come to 17 days according to the sources. The gastrointestinal drugs are being stocked in every 19 days.
Sun Pharmaceuticals, however, has thought about the situation and taken the initiative to bring some change. The company has decided to compensate the distributors. It has been said that the distributors would get 5% compensation for the loss that they have faced. However, the Ajanta Pharmaceuticals has not thought of doing any such thing.
Ajanta Pharma falls under the list of the companies that have the lowest rate of inventory. 14 days is considered to be the minimum rate of inventory levels. Ajanta has 16 days inventory. Dabur is said to have the highest inventory rate of 43 days.
Some distributors feared that they would not be able to get the GST rate back. Representation on GST Council has been sent already.