GST reduced on black fungus drug, several COVID-19 goods get tax cut
New Delhi, June 12: The GST Council has recommended complete exemption from IGST on several specified COVID-19 related goods.
These would include medical oxygen, concentrators, other oxygen storage and transportation equipment, certain diagnostic markers test kits, and Covid-19 vaccines even if imported on payment basis for donating to the government or on the recommendation of state authority to any relief agency.
The exemption is valid up to August 31 this year, the council decided.
Currently, 5 per cent GST is levied on domestically manufactured vaccines, while in the case of COVID-19 drugs and oxygen concentrators it is 12 per cent. With regard to the individual items, the GST Council decided to constitute a group of ministers to go into the need for further relief to COVID-19 related individual items immediately.
The meeting took place after the 43rd meeting of the council on May 28 in which a series of duty concessions on COVID-19 relief items and relaxation of compliance measures for taxpayers were announced.
Further the council also decided to cut the tax rate of Black Fungus drugs, Union Finance Minister Nirmala Sitharaman announced. The minister announced that the GST on ambulances has been cut from 28 per cent to 12 per cent. Further the council agreed to stick to a 5 per cent tax rate on vaccines.
The council also approved the rate reduction for Remdesivir from 12 per cent to 5 per cent. There would be on tax on Tocilizumab and Amphotericin the finance minister said.
The GST Council also cut the rate on medical grade oxygen, BiPaP machines, oxygen concentrators, ventilators and pulse oximeters from 12 to 5 per cent.
Recommendations of GST Council Meeting: