Competitiveness may be hit on GST rejig: Medical devices industry

AIMED said GST changes could hurt domestic medtech competitiveness and tilt the market towards imports, urging balanced tax slabs, refund reforms, and a higher Health Cess

India’s medical devices industry has flagged that a blanket rejig of goods and services tax (GST) rates could impact domestic competitiveness for the segment, tilting the market in favour of cheap imports.

 

The Association of Indian Medical Device Industry (AIMED) noted that the proposed GST changes to either 5 per cent or 18 per cent present significant risks, requiring careful consideration.

 

The body said that reducing GST to 5 per cent would enhance affordability and market reach for equipment, electronics, reagents and implants.

 

However the same rates for low-margin consumables, such as syringes, catheters and intravenous (IV) sets would worsen