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Budget 2023: Medical device makers seek GST cut to battle imports from China, US

Demand help for MSMEs in the sector, higher import duty, increase in healthcare expenditure and restructuring of GST rates to encourage the domestic industry against imports which grew 41 per cent last year.

January 26, 2023 / 11:09 AM IST

Faced with a surge in imports from countries such as China, the US and Germany, medical device makers in the country have sought focused government backing in the form of size-specific financial incentives and policy support in the upcoming Union Budget.

The Association of Medical Device Industry wants a flat 12 percent goods and services tax (GST) rate for all medical devices instead of the 18 percent rate applicable on some medical devices currently.

“Also reducing GST to 5 percent is making Indian products non-competitive to imports as then manufacturers are unable to keep reduced ex-factory prices based on lower input costs net of GST,” it said while demanding that the basic customs duty on import of these devices should be raised to at least 10 to 15 percent from current 0-7.5 percent currently.

Also Read: Here's a quick comparison of new vs existing income tax slabs