New Delhi, 13 September (IANS). The Association of Indian Medical Device Industry on Saturday welcomed the instructions issued on time to ensure the smooth implementation of new GST rates on medicines, formulations and medical devices by the Department of Drugs, National Drug Price Pricing Authority (NPPA) and Central Drug Standards Control Organization (CDSCO).
The recently released office memorandum by the Drug Department-NPPA states that manufacturers and markets are required to revise the MRP to show low rates of GST, but it will not be mandatory to withdraw or re-label the existing stock already released in the market, provided the price compliance at the retailer level is ensured.
The CDSCO has allowed stickers to be installed within three months on medical devices (Class C and D) to depict revised MRP, which will reduce operational challenges for importers and manufacturers.
AIMED forum Coordinator Rajiv Nath said, “This is a practical step taken by the government on time, which resolves an important operating challenge facing retailers, manufacturers, importers and distributors when the GST rate revise.”
Nath further said, “This provision ensures compliance, consumer transparency and prevents wastage of packaging materials, as well as protects the industry from improper stock loss.
Although the NPPA letter does not mention the punishment for non -compliance, it has the right to monitor the prices of drugs and medical devices and take corrective action.
Not complying with the price notifications of NPPA can be prosecuted under the Essential Commodities Act, 1955, resulting in imprisonment and fine.
Nath said that price reduction is possible to be competitive globally as GST is aimed at putting pressure on the manufacturers or traders working capital, but was to tax the value edition on each stage of the supply chain.
-IANS
SKT/
