In the 44th meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman, an important decision has been taken to reduce the rate of GST on Kovid related medicine and other essential items such as ambulance, etc. The central government has reduced the different rates of GST on all these essential items as per the requirement. It is to be known that the GST Council has reduced the rates of GST on equipment and medicines used in Coronavirus, their validity will remain till 30 September 2021.
Five percent rate on vaccine maintained
Giving information about the decisions taken in the meeting of the GST Council, Finance Minister Nirmala Sitharaman said that the council has agreed to maintain the tax rate of five percent on vaccines. But at the same time, the rate of GST on ambulances has been reduced from 28 percent to 12 percent. The rate of GST for temperature-checking equipment has been reduced to five percent.
These drugs or devices will attract five percent tax
Talking about drugs, the rate of anti-coagulants like Heparin and Remdesivir has gone up from 12 percent to five percent. In equipment, medical-grade oxygen, oxygen concentrators/generators (including personal imports), ventilators, ventilator masks/helmets, BiPAP machines, and High Low Nasal Cannula (HFNC) devices, the GST rate has been reduced from 12 percent to five percent. Apart from this, the tax on Kovid Testing Kits and Specified Inflammatory Diagnostic Kits have also been increased to five percent instead of 12 percent.
black fungus medicine GST free
In view of the increasing cases of black fungus in the country, the council has reduced the rate of GST on the drug Amphotericin B, which is used in its treatment, to zero. The government has reduced the tax rate on Tocilizumab and Amphotericin B to zero. Earlier they were taxed at five percent.
The last meeting was held on 28 May
Minister of State for Finance Anurag Thakur, Finance Ministers of States and Union Territories, and senior officials of the Central Government and States were also present in the meeting. The Council, in its last meeting held on 28 May, constituted a Group of Ministers (GoM) to provide tax relief on essential items related to COVID, including PPE kits, masks, and vaccines. The GoM submitted its report on June 7.
Some states were in favor of rate cut on essential commodities
The report of the GoM was considered in the meeting. Uttar Pradesh Finance Minister Suresh Kumar Khanna had said that the state government is in favor of a reduction in taxes on essential items related to Kovid for the convenience of the patients.
That's why the meeting of the GST Council was important
Economic activities have been affected by the second wave of Kovid-19. The burden of inflation has also increased on the people. In such a situation, the second meeting of this year being led by the Finance Minister was very important. In this, a decision was taken to reduce the tax rate on items related to the Kovid epidemic such as medicines, vaccines, and medical devices.