BioVoice News July 2017 Issue 2 Volume 2 | Page 21

Financial Consultant with a leading firm says, “The most valid and positive aspect of GST is that, there will exist a seamless input tax credit system, which shall pose like a boon despite all the enhanced costs.” After all the new massive overhauling requires massive effort and some initial teething issues can’t be rulled out. Hopefully, it will take lesser time for the GST to finally sink in. INDIAN MEDTECH FIRMS REQUEST GOVT TO GO EASY ON MEDICAL DEVICES The Association of Indian Medical Device Industry (AIMED) has asked the government to address the issue of multiple tax slabs within the just rolled out GST. While it thanked govt for reducing GST rates for all IVD diagnostic kits and reagents (HSN 3822) from 18% to 12%, it has requested it to consider the same for IVD Analyzers. Keeping all these in view, AIMED requested the government to consider caping the GST slab to 12% for Medical Devices bearing HSN 9027, 4818 and 9402 as is being applicable on other Medical Instruments and Diagnostics listed in 9018. The Medical Technology Association of India (MTaI) too voiced its concerns. It believes that the new taxation law will eventually lead to increase in the cost of medical devices. “The medical device sector can expect a higher tax burden due to the proposed GST rates, subsequently resulting in a higher cost burden to the patients,” mentioned Mr Sanjay Bhutani, Board Member, MTaI, adding, “The medical devices including surgical instruments, therefore, will roughly have an additional tax burden of 4.5% to 1.3%.” BIOVOICENEWS.COM 21