Pharma, medtech bodies seek transition time, simpler refunds

With the new GST regime coming into effect in just 10 days, pharmaceutical and medical technology device (medtech) industry bodies have urged the government to ensure a smooth transition in the critical health-care services to prevent supply chain disruptions.

- SANKET KOUL

According to sources, recommendations by the medtech industry to the Central Board of Indirect Taxes and Customs (CBIC) include a transition period of three months and sale and use of existing pre-printed packaging and stock with old MRPs without requiring relabelling.

"Since it is not feasible to apply stickers to billions of low-priced disposable medical devices, manufacturers could post revised, lower maximum retail price (MRP) rates on their websites and issue circulars to dealers and trade channel partners," people in the know said. Retailers could then be requested to sell products at the reduced MRP based on the new GST rate.