The GST Council has decided to bring down the tax rate on most of the COVID-19 essentials and also exempted the black fungus medicines off GST. The announcement was made after the 44th good and services tax (GST) council meeting on Saturday.
The decision was based on the recommendations of the group of ministers (GoM) – constituted to deliberate on the tax rates. These include essential medicines, oxygen, oxygen generation equipment and related devices, and diagnostic and testing machine kits. The new rates will remain in effect till at least September 30.
“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,” Finance Minister Nirmala Sitharaman said.
1) While GST on Tocilizumab and Amphotericin B is slashed to nil from 5 per cent, the rate on Remdesivir and anti-coagulants like Heparin is lowered from 12 per cent to 5 per cent.
2) The GST on medical grade oxygen, oxygen concentrators, ventilators, BiPAP machines and high flow nasal cannula (HFNC) devices has been cut to 5 per cent from 12 per cent. 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, the Finance Ministry said.
3) The GST on hand sanitisers and temperature check equipment has been reduced to five percent from 18 percent at present
4) 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
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5) “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,” Nirmala Sitharaman said.
In its previous meeting on May 28, the GST Council referred the decision over the tax rates on COVID vaccines to a group of ministers (GoM).
