GST Council cuts rates in COVID supplies, No tax on black fungus medicine

New Delhi: The 44th Goods and Services Tax (GST) Council Meeting was held around 11.45 am on Saturday morning chaired by Finance Minister Nirmala Sitharaman via video conferencing in New Delhi.

The meeting was also attended by MOS Anurag Thakur, the Finance Ministers of all the states and union territories.

According to reports, the GST Council approved all the recommendations of GoM on rate rationalisation. The GST on ambulances have been reduced to 12 percent.

There will be no change in the GST rate for COVID-19 vaccines. The vaccines are currently charged a GST of 5 percent, said Finance Minister.

No GST shall be levied on Amphotericin B, which is the antifungal drug used for black fungus treatment, she said.

“GST on electric furnaces and temperature checking equipment brought down to 5% and on ambulances to 12%. These rates will be valid till September as against August end recommended by the GoM,” added FM Sitharaman.

The GST Council has approved rate reduction for Remdesivir from 12% to 5% and a nil tax would be charged on Tocilizumab, added reports.

“GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other COVID19 related relief material. Rates to be announced soon,” she added.

Minister Nirmala Sitharaman also said that the five percent GST on vaccines will stay. The Centre will buy the 75 percent vaccine as announced and will pay its GST too. But 70 percent of income from GST will be shared with states.

The GST on ventilators, medical grade oxygen, COVID-19 testing kits, oxygen concentrators and BiPAP machine have been brought down to 5 percent from 12 percent at present. The GST on hand sanitisers and temperature check equipment has been reduced to five percent from 18 percent at present.

The GST on anti-coagulants like Heparin, high flow nasal canula (HFNC) device and pulse oximeters has been reduced to 5 percent from 12 percent at present. The tax rate on any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment would also be capped at 5 percent, she further added.

Leave A Reply

Your email address will not be published.