Most medical devices dropped to 5%
Instruments and appliances for medical, surgical, dental or veterinary use (9018), mechano-therapy, oxygen therapy and respiration apparatus (9019), other breathing appliances (9020) and X-ray and radiation apparatus (9022) moved from 12% to 5% from 22 September 2025. Medical thermometers (9025) and medical analytical instruments (9027) moved from 18% to 5%. Glucometers and test strips, diagnostic kits, surgical gloves and bandages are also at 5%. Update every device in your price list and quotation templates.
Maintenance contracts are services
An annual maintenance contract or repair visit is a supply of services, not goods. It carries the rate for maintenance and repair services under its SAC, which did not get the 5% treatment that devices got. Bill AMCs on a separate invoice line with the service SAC. Do not apply the device rate to an AMC just because it relates to a medical device.
E-way bill and e-invoice
Medical equipment shipments often exceed ₹50,000, so an e-way bill is needed for movement of goods, including deliveries to hospitals within the state where the state requires it. A dealer with aggregate turnover over ₹5 crore must also issue e-invoices for B2B sales. Hospitals are often registered because of their pharmacies, so most hospital sales are B2B.
Hospitals cannot use your input credit
Most hospital buyers run exempt treatment and cannot claim the GST you charge. That makes them very sensitive to the tax-inclusive price, and the 2025 cut lowered their cost directly. Pass the rate cut through in your price; the anti-profiteering expectation around rate cuts means customers will compare old and new invoices.
Demo and loan units; supplies to government hospitals and tenders
Dealers often send devices on demonstration or loan. Movement of goods not as a sale should be under a delivery challan, not a tax invoice. If the hospital later buys the demo unit, raise a tax invoice then. Keep serial numbers on the challan so the same unit can be traced. Government hospitals buy through tenders and the GeM portal, and some deduct TDS under GST at 2% on contracts above ₹2.5 lakh. Show the tender or GeM order number on the invoice and track TDS credits in your electronic cash ledger, since the amount deducted appears there after the buyer files its return.
Rentals of medical equipment
Dealers increasingly rent oxygen concentrators, hospital beds and BiPAP machines to patients at home. Renting goods without transferring ownership is a service, and under the services rate notification leasing or rental of goods is taxed at the same rate as the supply of like goods. Show the rental period, the device serial number and the refundable deposit separately; a deposit that is returned is not consideration, but a deposit forfeited for damage becomes taxable when adjusted.