Advices Budgeting Business COVID-19 Daily News

GST Rates Cut Down For COVID-19 essentials?

”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.

essential vaccines and medicine

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%
Medicines Tocilizumab 5% Nil
Amphotericin B 5% Nil  
Anti-Coagulants like Heparin 12% 5%  
Remdesivir 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%  
Ventilators 12% 5%  
Ventilator masks / canula / helmet 12% 5%  
BiPAP Machine 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%
Hand Sanitizer 18% 5%  
Temperature check equipment 18% 5%  
Gas/Electric/other furnaces for the crematorium, including their installation, etc. 18% 5%  
Ambulances 28% 12%  

GST on Vaccine

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.

For more such updates, keep watching this space!

Advices COVID-19 Daily News

PM Narendra Modi announces free vaccination.

Prime Minister Narendra Modi made an announcement today regarding the vaccination drive against coronavirus. He pays his condolences to the family of the deceased and his gratitude to the front-line workers. While remarking on the importance of vaccination in the fight against coronavirus, he encouraged people to not believe in rumors and come forward for vaccination.

What are the announcements?

He announced a list of relief decisions today for the vaccination drive against coronavirus.

vaccination

He said that the center will take over the complete responsibility of vaccination from the states. The center will procure the vaccination from the manufacturers and deliver it to states. Every citizen above 18 years of age will get free vaccination from 21 June 2021. On this day, we celebrate International Yoga Day every year.

For Private Hospitals:

Private Vaccine centers are allowed to procure 25 percent of vaccine stock from the manufacturers. However, they can charge only up to ₹150 as a service charge over the predetermined cost of vaccines.

Pradhan Mantri Garib Kalyan Yojana will continue in effect till Diwali this year. Poor households will get free ration every month till November 2021. This move will provide food to 80 crore Indians.

PM Narendra Modi also said that seven vaccines are being manufactured in the country. Out of seven, there are three vaccines in advanced trials. Two vaccines for children and a nasal vaccine are also under trial. Also, vaccine procurement from other countries increases.

He asked people to stay vigilant against vaccination rumors and fearmongering. He also warned that those who are spreading such rumors are playing with the innocent lives of others.

For more updates like these, keep watching this space!