Lower GST sparks a pricing reset, with India’s drugs regulator giving medical device makers three months to revise MRPs, even as industry flags feasibility challenges.
The central drugs regulator has directed manufacturers and importers of Class C and D medical devices to revise their maximum retail prices (MRPs) to reflect the reduced goods and services tax (GST) rate of 5 per cent.
Companies have been given three months to update their existing stock with new stickers displaying the revised prices.
The order, issued by the Central Drugs Standard Control Organisation (CDSCO), covers high- and moderate-risk medical products, including bone implants, pacemakers, stents, CT scanners, MRI machines, and defibrillators. State drugs controllers have been asked to speed up approvals for no-objection certificates to ensure smooth relabelling.
The GST Council had earlier announced a reduction in GST on medical devices from 12 per cent to 5 per cent, effective 3 September. Following this, the Department of Consumer Affairs (DoCA) allowed manufacturers to declare revised MRPs on unsold inventory until 31 December or until existing stocks are cleared. DoCA also advised firms to publicise the revised prices through advertisements.
However, industry players have expressed concerns over the feasibility of compliance. Manufacturers argue that stickering revised prices across millions of products is impractical, especially for small and medium-sized firms with extensive product ranges. Retailers also note that displaying posters for individual product revisions is unworkable.
In a report by Financial Express, Rajiv Nath, forum coordinator at the Association of Indian Medical Device Industry (AiMeD), said recalling inventory for relabelling would be highly disruptive. He suggested that manufacturers should instead update revised MRPs on their official websites to inform consumers.
Meanwhile, the National Pharmaceutical Pricing Authority (NPPA) is drafting implementation guidelines for the reduced GST rates applicable to the pharmaceutical and MedTech sectors. According to reports, these are expected to be released early next week.
