AiMeD Hails Govt's Move on New GST Regime Transition

The Association of Indian Medical Device Industry (AiMeD) has expressed its whole-hearted support for the latest instructions issued by the Department of Pharmaceuticals (DoP), National Pharmaceutical Pricing Authority (NPPA) and the Central Drugs Standard Control Organisation (CDSCO) for a smooth implementation of changed GST rates on drugs, formulations, and medical devices, starting from September 22, 2025.

According to a DoP–NPPA Office Memorandum, manufacturers and marketers are required to revise Maximum Retail Prices (MRPs) to showcase the reduced GST while recalling or re-labelling existing stock that is already in the market will not be obligatory, provided retailers adhere to the updated prices.

To facilitate change in MRPs, CDSCO has permitted stickering on Class C and D medical devices for a transition period of three months, thus compliance with the provisions is made easier for manufacturers and importers.

Rajiv Nath, Forum Coordinator of AiMeD, described the action as a “mirrored approach that averted the clash scenario and showed foresight on behalf of the government” maintaining a consumer-friendly perspective while at the same time striking a balance with the industry’s concerns about ease of doing business.

Also Read: New GST Regime Lowers Cost of Drugs, Devices

He added that the provision prevents wastage of packaging material, protects businesses from losing stocks, and at the same time, guarantees transparency from the point of view of consumers. Nath also appreciated the government’s decision to allow the continued use of currently available packaging until December 31, 2025, describing this as a money-saving step that would go a long way in helping MSMEs.

AiMeD requested the industry members and other stakeholders to strictly adhere to all issued guidelines and immediately send out alerts to generate consumer trust. It also requested more details about Class A and B devices, the handling of the flexible packaging issue, and changes in GST refunds that would facilitate global competitiveness.