The National Pharmaceutical Pricing Authority (NPPA) has granted permission to the manufacturers of oxygen concentrators, pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer and glucometer to increase the retail price accordingly with the ending of the Goods and Services Tax (GST) concession rates on September 30, 2021.

NPPA, through an order in June 3, 2021, had fixed the retail price of oxygen concentrators with a trade margin not exceeding 70 per cent, in view of the extraordinary circumstances arising due to Covid-19 pandemic that has resulted in volatility in the maximum retail price of the product in the market.

Similarly, it has also fixed the trade margin under the Trade Margin Rationalisation (TMR) programme at 70 per cent for pulse oximeter, blood pressure monitoring machine, nebuliser, digital thermometer and glucometer, which are also non-scheduled medical devices, through an order on July 13, 2021.

The NPPA issued an order in the backdrop of withdrawal of GST rate concession for these medical devices, following which some of the manufacturers and marketing companies raised queries on its impact on the regulated price.

The GST Council meeting in June had reduced the rates of pulse oximeters including personal imports, hand sanitiser, temperature checking equipment’s and others from 12 and 18 per cent respectively to five per cent. Similarly, the oxygen concentrator GST rates were reduced from 12 per cent to five per cent. While in the latest meeting held in September, the GST Council extended the reduced rates for the Covid-19 related medicines and added new medicines into the concession list, it did not mention the rates of these medical devices. This is expected to bring back the GST rates of these products back to 12 and 18 per cent, whichever was existing prior to Covid-19.

“All the manufacturers and marketing companies may revise the MRP, up to the extent of increase in GST rate, of the medical devices subject to actual payment of GST,” said an office memorandum issued by the NPPA.

The manufacturers and marketing companies are required to issue revised price lists to all the participants in the supply chain besides submitting the price list in Form VI to NPPA. These medical devices shall be monitored as per the regulations in Drug Price Control Order, 2013, the order stated.

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