Does AiMeD Endorse the Government's GST Rate Reduction and MRP Relief for Medical Devices?
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Synopsis
AiMeD praises the government's latest measures to cut GST rates and implement MRP changes for medical devices. This initiative is set to ease operational burdens for the industry while ensuring consumer transparency and compliance. Industry experts urge adherence to guidelines to maintain trust and avoid penalties.
Key Takeaways
- GST rate cuts will take effect on September 22.
- Manufacturers can use existing stock without mandatory re-labeling.
- Stickering on medical devices is permitted for three months.
- Failure to comply with NPPA notifications may lead to legal consequences.
- Existing packaging materials can be utilized until the end of the year.
New Delhi, Sep 13 (NationPress) The Association of Indian Medical Device Industry (AiMeD) expressed its approval for the timely directives issued by the Department of Pharmaceuticals (DoP), National Pharmaceutical Pricing Authority (NPPA), and the Central Drugs Standard Control Organisation (CDSCO) aimed at facilitating the smooth execution of the revised GST rates on drugs, formulations, and medical devices, which will take effect from September 22.
The Office Memorandum released by DoP-NPPA clarified on Friday that while manufacturers and marketers are obligated to adjust Maximum Retail Prices (MRPs) to mirror the reduced GST, recalling or re-labeling existing stock already in circulation will not be compulsory, as long as price compliance is maintained at the retailer level.
Moreover, CDSCO has permitted the use of stickering on medical devices (Class C and D) for a period of three months to display updated MRPs, thus alleviating operational hurdles for importers and manufacturers.
“This is a well-timed and sensible initiative by the government that addresses a significant operational issue faced by retailers, manufacturers, importers, and distributors whenever GST rates undergo modifications,” remarked Rajiv Nath, Forum Coordinator of AiMeD.
“The provision guarantees compliance, enhances consumer transparency, and mitigates waste of packaging materials while also shielding the industry from unnecessary stock losses. We commend the government for finding an appropriate balance between consumer protection and facilitating business operations for the industry,” Nath further commented.
While the NPPA's communication does not mention penalties for non-compliance, it retains the authority to oversee drug and medical device pricing and can implement corrective measures.
Failure to comply with NPPA's pricing notifications may lead to legal action under the Essential Commodities Act, 1955, which could result in imprisonment and financial penalties.
“The allowance to utilize existing packaging materials by DoCA until December 31 is a cost-effective and highly appreciated measure that will aid MSMEs and decrease unnecessary waste. We urge all industry participants, along with our channel partners and stakeholders, to rigorously adhere to the guidelines and issue timely public notifications to foster transparency and consumer trust,” Nath added.
He noted, “We are awaiting clarification regarding applicability for Class A and B medical devices and on pre-printed flexible packaging stocks with prior MRP for small packs of disposable medical devices like needles, where online over-printing may pose challenges.”
The decision regarding GST reforms related to refunds on GST paid on services and capital expenditure, similar to practices in various countries globally, is still pending.
Nath stated that this “price reduction is essential for global competitiveness, as the objective of GST was to tax value addition at each stage of the supply chain and not to impose financial strain on manufacturers or traders.”
Point of View
It is imperative to recognize the balance the government is striving for in the realm of healthcare and commerce. The recent directives aimed at reducing GST rates and easing MRP adjustments reflect a thoughtful approach to enhance industry transparency and consumer trust. It is essential for all stakeholders to comply with these guidelines to foster a more efficient marketplace.
NationPress
31/10/2025
Frequently Asked Questions
What are the new GST rates for medical devices?
The revised GST rates for medical devices will be effective from September 22, as per the latest directives by the government.
Will manufacturers need to re-label existing stock?
No, re-labeling of existing stock is not mandatory, provided price compliance is maintained at the retailer level.
What is the deadline for using existing packaging materials?
Existing packaging materials can be used until December 31, which is a welcomed measure for cost-saving.
What could happen if NPPA's price notifications are not followed?
Non-compliance with NPPA's price notifications may lead to prosecution under the Essential Commodities Act, 1955, possibly resulting in imprisonment and fines.
What is the significance of the government's recent initiatives?
The government's initiatives aim to ease operational challenges, ensure consumer transparency, and prevent waste, ultimately benefiting the medical device industry.
