Indian medical device manufacturers fear that the proposed GST reforms could make imports cheaper and erode domestic competitiveness.
Association of Indian Manufacturers of Medical Devices (AiMeD) Forum Coordinator Rajiv Nath said reducing GST to 5% on high-value equipment would aid affordability, but applying the same rate to low-margin consumables like syringes and catheters would hurt Indian producers.
Currently taxed at 12%, devices face an inverted duty structure since inputs attract 18%. Moving them to either 5% or 18% under the new regime poses risks 18% would raise costs for hospitals and patients, while 5% could make imports more attractive.
AiMeD has urged the government to retain 12% GST for most consumables, keep 5% for equipment, raise the Health Cess on imports from 5% to 10%, and levy 18% GST on highly import-driven products like rubber gloves.
