Pune chemists stop PCMC’s medicine supply
Pimpri Chinchwad Municipal Corporation reportedly failed to pay pending dues to the chemists since July 2017
Pimpri Chinchwad Municipal Corporation (PCMC) is currently not getting medicines from various wholesale chemist vendors as chemists have claimed that they have not received payment for the medicines supplied to PCMC since July this year. The chemists have also demanded reimbursement of the difference in cost of medicines supplied since the implementation of the Goods and Services Tax (GST).
Chemists claimed that the corporation is supposed to pay the pending dues applicable since July this year. A complaint has been filed by around 47 chemists with the health department of the PCMC to address the issue of non payment of pending dues arising due to difference between GST and VAT.
The vendors have stated that from July 1, this year, a majority of the medicines and surgical goods have been placed under the 12 per cent GST slab, which were earlier under the six per cent VAT slab. They said that due to this, the vendors are suffering a loss of six per cent arising due to difference in VAT and GST.
The chemists further said that they have demanded reimbursement of the difference of amount arising between GST and VAT. Speaking about the issue, chemist Kanan Nambiar said that bills worth Rs.22 lakh are pending with the PCMC.
“The bills are pending for various medicines, including that of swine flu. Swine flu medicine is a life saving drug, yet the department has not paid the chemist vendors since July. We are now forced to stop supplying medicines as our payment is pending,” added Nambiar.
Other wholesale medicine vendors who logged a complaint regarding the non-payment are Sanjay Medicals, Neha Enterprise, Laxmi Medicals, Mahalaxmi Distributors, Paras Surgical, Austic Healthcare and Oswal Enterprise.
Nambiar further added that the vendors have been approved by e-tender for a time span of two years. “Only the authentic and verified vendors are approved through this process. We want the administration to re-tender the process,” said Nambiar.
The letter states that, as per terms and conditions of the tender, payment should be cleared within 30 days after the supply of the material. The letter further said, the payment should now be done with 28 per cent annual interest within three to four days, otherwise the wholesalers would take a legal action.
Despite several attempts, the health department of the PCMC could not be reached.