GST Council meet: FM Sitharaman announces tax rate cut for COVID-related medicines, equipmentGST Council, in its 44th meeting today, decided to continue with a 5% tax rate on vaccines.
It brought down tax rates on Covid essentials like temperature checking equipment, concentrators, and oximeters.
GST Council cuts tax rate from 12% to 5% on medical grade oxygen, BiPaP machines, oxygen concentrators, ventilators, pulse oximeter.
GST on electric crematoriums 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.
GST Council approved rate reduction for Remdesivir from 12% to 5%; nil tax on Tocilizumab, Amphotericin.
Imports of mucormycosis drug Amphotericin B are exempted from tax as was decided in the last meeting held on May 28.
“Centre is buying and will provide it free to the people, GST will not be levied on the vaccination,” finance minister Nirmala Sitharaman said.
In its last meeting held on May 28, the Council had decided to set up a GoM to look into the matter of taxes on Covid vaccines, equipment and medicines.
The GoM, headed by Meghalaya chief minister Conrad Sangma, had submitted its report on June 7.
The GoM had recommended that the GST on vaccines be determined by the GST Council and had referred the matter back to the Council.
For Covid relief material such as medical grade oxygen, oxygen concentrators, pulse oximeters and Covid testing kits, the GoM suggested a 5% rate.
The cuts will be implemented in a day or two, finance secretary Tarun Bajaj said.
GST Council meet: FM Sitharaman announces tax rate cut for COVID-related medicines, equipment