The Central Drugs Standard Control Organisation (CDSCO) has directed manufacturers and importers of Class C and D medical devices to update their inventories with revised Maximum Retail Prices (MRPs) reflecting the newly reduced Goods and Services Tax (GST) rates.  

In an order issued on Thursday (Sept 11), the regulator granted a three-month window for the industry to affix stickers displaying the revised MRP on existing stock.

The directive applies to both domestic manufacturers and importers of Class C and D devices, which fall under the moderate-to-high and high-risk categories. These include bone fixation implants, X-ray machines, infusion pumps, pacemakers, defibrillators, and implantable stents.

The order stated, “In exercise of the powers conferred udert the Drugs and Cosmetics Act 1940 and Rules thereunder, the Central Licencing Authority (CLA) has no objection to affix sticker of the revised Maximum Retail Price (MRP) by the importers as well as manufacturers of Class C and D medical devices for implementation of GST within 3 months from the date of this order.”   

Drugs Controller General of India (DCGI) Dr. Rajeev Singh Raghuvanshi has also urged all states and UT drugs controllers to expedite the process of issuing ‘no-objection’ certificates for relabeling.

The government, on September 3, announced sweeping changes to GST on medical products. GST has been reduced from 18 percent to 5 percent on several medical, surgical, dental, and veterinary apparatus, including thermometers.

For medical equipment and supplies such as wadding gauze, bandages, diagnostic kits, reagents, and blood glucose monitoring systems (glucometers), the GST has been cut from 12 percent to 5 percent.

Notably, GST on 33 life-saving drugs and medicines has been reduced from 12 percent to NIL, while three critical drugs used for cancer, rare diseases, and severe chronic conditions have seen rates reduced from 5 percent to NIL. Additionally, GST on all other drugs and medicines has been revised from 12 percent to 5 percent.

The revised rates and exemptions will take effect from September 22, 2025.