Association requests the ministry to keep IOL and other 9021 items at zero per cent or 5 per cent of GST rate
The Association of Indian Medical Device Industry (AIMED) has urged the Finance Ministry to cap the GST rate slab to 12 per cent for medical devices under HS code 9027, 3822, 4818 and 9402. Currently, medical devices attract GST of 18 per cent.
Most of the manufacturers are worried as medical devices such as in vitro diagnostic – IVD reagents (902750), IVD analyser (3822), hospital furniture like beds (94029010), OT table (94029090), dentist chair (94021010) and low cost consumables like non-wovens drapes and masks (340130) etc. has been placed under GST rate slab of 18 per cent.
Rajiv Nath, Forum Co-ordinator, Aimed in the letter to the Finance Ministry said, “We congratulate you for your dynamic leadership for bringing a revolutionary reform in the history of indirect taxes since independence. While we welcome the GST Slab of 12 per cent on most of the medical devices, we are surprised to note that the slab rate of GST for HSN 902750, 3822, 4818 and 9402 has been kept at 18 per cent, which creates concerns among some of our members.”
Speaking on affordability and accessibility of medical devices, Nath said, “Cost of drugs and diagnostics constitute about 70 per cent of health expenditure in India and is estimated for 5 crore people below poverty line annually. Therefore, diagnostic tests need not only be available, but also affordable and accessible in order to be able to make a real impact. Diagnostics is no longer a luxury. It is a basic preventive healthcare need for every human being.”
Medical Devices – IVD Analysers that are being adversely impacted by zero per cent basic duty and 18 per cent GST under 902750 are bio chemistry analyser; ELISA instruments; haematology analysers; electrolyte analysers; coagulation analysers etc.
The association has also requested the government to keep IOL (Intra Ocular Implants) and other 9021 items at zero per cent or 5 per cent GST rate, as hearing aids are still at zero per cent. IOL for treating cataract which earlier enjoyed zero per cent tax as was for hearing aids, has been now kept at 12 per cent.
Most medical devices including consumables and disposables fall into 12 per cent and five per cent slab of GST rates. The medical devices which are in vitro diagnostics and their analysers and hospital furnitures like OT tables, beds and dentist chairs etc and hospital bed sheets and sanitary items including sanitary napkins have been kept at 18 per cent GST rate.
Nath, has raised a question on why these commonly needed medical and healthcare products have been given a raw deal. He further mentioned that for Indian manufacturers upto 12 per cent maximum rate is good to be competitive against imports in most cases. Below five per cent rate would again be counterproductive in terms of loss of competitiveness against imports.
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