• Notification Date: 22-01-2022
• Notification No: N/A

Medical Devices Industry requests a Hike in Customs Duty and a cut in GST in Budget 2022-23

Indian medical devices industry has opted for a hike in the Customs Duty on medical imports. The industry has also sought a reduction in the GST in the Budget 2022-23. It has urged the Government for an increment in basic customs duty on the importation of medical devices. They are expecting a hike from 7.5% duty to 15%. They have urged for a reduction in the GST from 18% to 12% in the Union Budget 2022-23.   

The custom duty in India is low. So, India is importing Rs.46,000 crores of medical devices. India is import-dependent for over 80%.

The Forum Coordinator of Association of Indian Medical Device Industry (AIMDI), Rajiv Nath has stated that “The importer lobby’s excuse of increase in the cost of medical devices for patients due to increase in customs duty is highly misplaced since the customer buy devices on maximum retail price (MRP). We also urge the Government that instead of 18% Goods and Service Tax (GST) applicable on medical devices, the GST also needs to be reduced to a flat 12% for all medical devices”.

According to Dr. Shravan Subramanyam, the Managing Director of Wipro GE Healthcare at GE Healthcare, the Union Budget 2022-23 can be expected to focus on investments in digital tools that are useful for the enhancement of patient care and hospital work.