The GST Council on Saturday slashed tax rate on COVID-19 drugs such as Remdesivir and Tocilizumab as well as on medical oxygen and oxygen concentrators but ignored demands for reduction in taxes on vaccines.
The Council, acting on the recommendation of a group of ministers from different states, cut to nil GST on COVID-19 drug Tocilizumab and black fungus medicine Amphotericin B, from existing 5 per cent. Besides, hand sanitiser, pulse oximeter, BiPAP machine, testing kit, ambulance and temperature check equipment were among the 18 items on which GST rates were lowered.
Advertisement
A 5 per cent GST levy on vaccines will continue which will allow manufacturers to get benefit of settling taxes paid on inputs.
Read more about GST Council to meet Saturday, discuss tax exemption on Covid-19 essentials on Business Standard. The council meet is expected to deliberate the exemption and concession on Covid-19 related items
Meghalaya Chief Minister Conrad K Sangma on Thursday chaired a meeting of Group of Ministers constituted to examine the need for GST concession on COVID materials and said they will submit their recommendations by June 8. We will make sure that we submit our recommendations before the 8th of this month, Conrad told reporters after chairing the GOM meeting via video conferencing here. The 8-member GOM was constituted by the Finance Ministry to examine the need for GST concession or exemption and make recommendations on COVID vaccines, drugs, and medicines for COVID treatment, testing kits for COVID detection. The other items include medical grade oxygen, pulse oximeters, hand sanitizers, oxygen therapy equipment such as concentrators, generators and ventilators, PPE kits, N95 masks, surgical masks, temperature checking equipment, and other items required for COVID relief.
Source:
Highlights
The GST Council in its meeting on May 28 had decided to set up a Group of Ministers.
GoM will submit its report by June 8.
The GST Council on Friday left taxes on COVID-19 vaccines and medical supplies unchanged.
New Delhi: An eight-member ministerial panel under Meghalaya Chief Minister Conrad Sangma will examine the need for exempting GST or cutting rate on Covid essentials like vaccines, drugs, hand sanitisers, masks, PPE kits and oxygen related equipment.
The GST Council in its meeting on May 28 had decided to set up a Group of Ministers (GoM), which will submit its report by June 8.