PremiumNew Delhi: The National Anti-profiteering Authority’s (NAA) direction to tax officials to enforce Goods and Services Tax (GST) rate cut on covid-related medical supplies will compel suppliers to pass on the tax relief to consumers, said an industry body representing medical device makers.
“When the government has done its part in reducing prices by cutting GST and customs duty rates of several medical devices, it becomes imperative that the medical devices suppliers make relevant price-related changes in the interest of patient affordability," said Sanjay Bhutani, Director, Medical Technology Association of India (MTaI). It represents research-based medical technology companies and device makers operating in India.
“Since the benefit of the input tax credit has been permitted in respect of the supply of goods and services, the task of passing this benefit to the consumers should be relatively easier. NAA’s direction to the field officers to collect evidence against suppliers that might increase the base price of the products is also a timely intervention," said Bhutani. This will compel suppliers to adhere to the guidelines laid down by the department, he said.
NAA had on Thursday instructed the top brass of the GST administration to ensure that producers and suppliers of medical devices and drugs lower prices of covid-related supplies to pass on the benefit of recent tax rate cuts to consumers.
The profiteering watchdog also asked senior officials of the administration to ensure that complaints about medical device makers, pharmaceutical companies and suppliers not passing on the benefit of tax cuts to consumers are taken up with the anti-profiteering authorities on priority.
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