The Association of Indian Medical Device Industry (AiMeD) has cautioned that any abrupt changes to GST rates for medical devices could undermine domestic manufacturing competitiveness and impact affordability for patients.
Currently, most medical devices are taxed at 12% GST, while inputs attract 18%, creating an inverted duty structure and margin pressures. Proposed changes—to either 5% or 18%—pose significant risks, according to AiMeD.
Rajiv Nath, Forum Coordinator, AiMeD
“For high-value equipment, electronics, reagents, and implants, lowering GST to 5% could improve affordability and accessibility. But applying 5% to low-margin consumables such as syringes, catheters, and IV sets would worsen the inverted duty structure, making imports cheaper,” said Rajiv Nath, Forum Coordinator, AiMeD. “The most balanced approach is to retain 12% GST on consumables while allowing 5% for high-value equipment.”
Nath added that raising GST to 18% would raise device costs for hospitals and households, while a flat 5% without refund reforms could discourage local production. AiMeD has also urged the government to streamline GST refunds, including on input services and capital goods, to ease cash flow for manufacturers.
Industry body IRGMA flagged nitrile gloves as a special case, where manufacturers seek 18% GST due to high input credit accumulation and low value addition in a highly import-driven market.
AiMeD further proposed increasing the Health Cess on imports from 5% to 10% to level the playing field and support Ayushman Bharat. “A calibrated GST structure is essential to protect patients, promote Make in India, and advance Atmanirbhar Bharat,” Nath stressed.