Industry Cheers: AiMeD Lauds Government for GST & MRP Reforms, Easing Medical Device Burden

NEW DELHI – 12 September 2025 — The Association of Indian Medical Device Industry (AiMeD) has lauded the government’s swift and pragmatic response to the recently announced GST rate rationalisation. Timely directives from the Department of Pharmaceuticals (DoP), National Pharmaceutical Pricing Authority (NPPA), and the Central Drugs Standard Control Organisation (CDSCO) will ensure a seamless transition and immediate benefits for both consumers and the industry.

This collaborative effort, which follows the GST rate reductions effective from 22 September 2025, addresses critical operational challenges by prioritising consumer welfare and streamlining implementation for manufacturers and distributors alike.

Key measures announced include:

Pricing flexibility: The NPPA clarified that while manufacturers must revise Maximum Retail Prices (MRPs) to reflect reduced GST, mandatory recall and re-labelling of existing stock are not required. Retailers are responsible for ensuring the updated price is applied at the point of sale, ensuring consumer transparency without triggering stock wastage.
Operational relief: For Class C and D medical devices, the CDSCO has provided a three-month window to apply revised MRPs via stickering. This decision significantly eases logistical pressure and minimises costs for importers and manufacturers.
Waste reduction: The Department of Consumer Affairs’ allowance for using existing packaging until 31 December 2025 is a crucial cost-saving measure, particularly for Micro, Small, and Medium Enterprises (MSMEs), and prevents unnecessary waste.

AiMeD’s perspective:
“This is a timely and pragmatic step by the Government that strikes the right balance between protecting consumer interests and supporting industry ease of doing business,” stated Mr. Rajiv Nath, Forum Coordinator for AiMeD. He further emphasised the importance of transparent communication, urging all industry stakeholders to promptly issue public notifications to build consumer trust.

Awaiting further clarity:
While celebrating the positive changes, AiMeD remains focused on ongoing improvements. “We await clarification for applicability for Class A and B medical devices,” Mr. Nath added. The association is also pushing for crucial GST reforms on capital expenditure and services to foster a globally competitive manufacturing ecosystem and ease working capital stress for the sector.