AiMeD welcomes govt’s GST rate cut & MRP implementation relief for medical devices

New Delhi: The Association of Indian Medical Device Industry (AiMeD) has welcomed the directions issued by the Department of Pharmaceuticals (DoP), National Pharmaceutical Pricing Authority (NPPA) and the Central Drugs Standard Control Organisation (CDSCO) to ensure smooth implementation of the revised GST rates on drugs, formulations, and medical devices, effective from 22nd September 2025.

The Office Memorandum issued by DoP–NPPA clarifies that while manufacturers and marketers are required to revise Maximum Retail Prices (MRPs) to reflect reduced GST, recalling or re-labelling of existing stock already released in the market will not be mandatory, provided price compliance is ensured at the retailer level. CDSCO has further permitted the use of stickering on medical devices (Class C and D) within three months to reflect revised MRPs, thereby easing operational challenges for importers and manufacturers.

Commenting on the development, Rajiv Nath, Forum Coordinator, AiMeD, stated: “This is a timely and pragmatic step by the Government that addresses an important operational challenge faced by retailers, manufacturers, importers, and distributors whenever GST rates are revised. The provision ensures compliance, consumer transparency, and prevents wastage of packaging material while also safeguarding the industry against undue stock losses. We appreciate that the Government has struck the right balance between protecting consumer interests and supporting industry ease of doing business.”

He further added: “The allowance to use existing packaging material by DoCA till 31st December 2025 is a cost-saving very welcome measure that will benefit MSMEs and reduce unnecessary waste. We urge all industry members as well as our channel partners and stakeholders to strictly comply with the guidelines and issue prompt public notifications to ensure transparency and consumer trust.”

“We await clarification for applicability for Class A & B medical devices as well as on pre-printed flexible packaging stocks with prior MRP for small packs of disposable medical devices like needles where online over-printing may be a challenge.”

“We also await decision on GST reforms of refund on GST paid on services and on capital expenditure as is available in many countries globally so that reduction of prices is possible to be globally competitive, as the purpose of GST was to tax value addition at each step of the supply chain and not cause working capital stress to manufacturers or traders.”

AiMeD reiterated its commitment to extend full cooperation to the Government for ensuring smooth transition of revised GST rates, safeguarding patient interests, and strengthening India’s medical device manufacturing and healthcare delivery ecosystem.