”It is expected that in line with the fitment committee’s suggestions, the GoM empowered to look into the GST relief on COVID-19 related drugs and other items have opted for a blanket rate of five percent even for other items (drugs already attract five percent). The complete exemption is likely to be counter-productive. Anyway, GST reduction will not directly benefit people who are getting the COVID-19 vaccines for free (which today comprises the majority),” said Mr. Saket Patawari, Executive Director–Indirect Tax, Nexdigm.
A list of the category-wise essentials and services is presented by the council is mentioned below:
|Category||Item||Present GST Rate||Recommended GST Rate|
|COVID vaccines||All vaccines||5%||5%|
|Anti-Coagulants like Heparin||12%||5%|
|Any other drug recommended by the Ministry of Health and Family Welfare (MoHFW) and Dept. of Pharma (DoP) for Covid treatment||Applicable Rate||5%|
|Oxygen, Oxygen generation equipment and related medical devices||Medical Grade Oxygen||12%||5%|
|Oxygen Concentrator/ Generator, including personal imports thereof||12%||5%|
|Ventilator masks / canula / helmet||12%||5%|
|High flow nasal cannula (HFNC) device||12%||5%|
|Testing Kits and Machines||Covid Testing Kits||12%||5%|
|Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin, and LDH||12%||5%|
|COVID-19 related relief material||Pulse Oximeters, incl personal imports thereof||12%||5%|
|Temperature check equipment||18%||5%|
|Gas/Electric/other furnaces for the crematorium, including their installation, etc.||18%||5%|
Previously on 28th May also GST council referred to the decision over tax rates on the COVID-19 vaccine to a group of ministers. The Goods and Services Tax Council is chaired by Finance Minister Smt. Nirmala Sitharaman. She approved all the recommendations of the group of ministers which was set up to deliberate tax relief on covid-19 essentials.
She explained that the center will buy the 75% vaccines and will pay its ST too. 5% of tax will stay on the vaccine. These rates will be valid till this September.
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