No change in GST on vaccines, but tax cut for other Covid essentials
Published On: Saturday, June 12, 2021 | By: Team KnowMyStock
In its 44th meeting today(12th June 2021), the Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, approved all recommendations of GoM on rate rationalisation. The GoM, set up by the Council on May 28, was mandated to look at tax exemption and concessions on various Covid items including vaccines, drugs, and equipment. GST on ambulances has been reduced to 12% from the current 28%. GST Council slashed the tax rate from 12% to 5% on medical grade oxygen, BiPaP machines, oxygen concentrators, ventilators, hand sanitisers, temperature check equipment, high flow nasal cannula, pulse oximeter. Also, the tax on Covid testing kits has been brought down to 5% from 12%. "Today's meeting was a single-agenda meeting on the Group of Ministers which was constituted in last GST Council meeting to come up with recommendations on tax relief for Covid-19 essentials," said Finance Minister.
"5% GST on vaccines will stay. The Centre will buy the 75% vaccine as announced and will pay its GST too. But 70% of income from GST will be shared with states," added Sitharaman.
“While GST on Tocilizumab and Amphotericin B is slashed to nil from 5%, the rate on Remdesivir and anti-coagulants like Heparin is lowered from 12% to 5%," she said at a press conference in New Delhi.
"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," said Sitharaman on the outcome of 44th GST Council meet.
GST rates have been decided for 4 categories of products- medicines, oxygen, oxygen-generation equipment, testing kits and other machines and other Covid-related relief material, she said.
Tags: Goods and Services Tax (GST) Council GST on vaccines Union Finance Minister Nirmala Sitharaman
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