The Central Drugs Standard Control Organisation (CDSCO) on Thursday (September 11) directed medical device manufacturers and importers to update their retail sale prices (MRP) in line with the recently reduced Goods & Services Tax (GST) rates. Companies have been given a three-month window to affix stickers on their existing stock with the revised prices.
The order applies to Class C and D medical devices categorized as moderate-to-high and high-risk products including bone fixation implants, CT and MRI machines, pacemakers, defibrillators, and implantable stents. State drug controllers have also been instructed to speed up the issuance of no-objection certificates (NOCs) required for relabeling.
On September 3, the government lowered GST on medical devices from 12% to 5%. Following this, the Department of Consumer Affairs (DoCA) issued a circular on September 9 allowing companies to declare the revised MRP, including updated tax rates, on unsold stock manufactured or imported before the tax cut. This provision is valid until December 31 or until old stock is cleared. DoCA has also asked manufacturers to inform consumers about the new prices through advertisements.
Implementation hurdles
Industry representatives argue that both advertising and stickering requirements are impractical. “Small and medium firms produce thousands of stock keeping units (SKUs). It is not feasible for them to advertise revised prices for each product. Even at the retail pharmacy level, putting up posters for individual product revisions is unmanageable,” said one domestic device maker.
Industry response and alternatives
Rajiv Nath, forum coordinator of the Association of Indian Medical Device Industry (AiMeD), warned that recalling inventory for stickering would be highly disruptive. “The CDSCO order doesn’t address the ground-level challenges of re-stickering billions of products already in the supply chain. We have requested exemption from this requirement and suggested that manufacturers instead publish the revised MRPs on their websites,” he said.
Meanwhile, the National Pharmaceutical Pricing Authority (NPPA) is preparing guidelines for implementing the revised GST rates across the pharma and MedTech sectors. These are expected to be released early next week, according to officials.
