Dynamite News GST Council cuts tax rate on Covid essentials
Union Finance Minister Nirmala Sitharaman said on Saturday that recommendations of Group of Ministers (GoM) set up to look into tax relief on Covid-19 medical supplies have been accepted by the GST Council.
New Delhi: Union Finance Minister Nirmala Sitharaman said on Saturday that recommendations of Group of Ministers (GoM) set up to look into tax relief on Covid-19 medical supplies have been accepted by the GST Council.
The Goods and Services Tax (GST) rate has been reduced from 12 per cent earlier to 5 per cent now on Covid testing kits, medical grade oxygen and ventilators.
For ambulances, the GST rate has been reduced from 28 per cent to 12 per cent and for hand sanitsers from 18 per cent to 5 per cent. These rates will be valid till September 30.
Also Read |
RBI to issue digital rupee using blockchain in FY 22-23: Sitharaman
Temperature check equipment will now attract 5 per cent GST, earlier it was 18 per cent. The GST rate on pulse oximeters, including personal imports, has been reduced to 5 per cent from earlier 12 per cent. The GST rates on specified inflammatory diagnostic kits has dropped to 5 per cent from 12 per cent and rates on gas/electric/other furnaces for crematorium including their installation has been cut to 5 per cent from 18 per cent earlier.The GST Council has decided not to impose any GST on Covid-19 related drugs -- Tocilizumab and Amphotericin B. Earlier the rate was 5 per cent.
Rates on anti-coagulants like Heparin and Remdesivir have been reduced to 5 per cent from 12 per cent. Any other drug recommended by the Ministry of Health and Family Welfare (MoHFW) and the Department of Pharma (DoP) for Covid treatment will now attract 5 per cent tax.
The GST Council also gave relief on ventilator masks/canula/helmet reducing tax to 5 per cent from 12 per cent, for BiPAP machine to 5 per cent from 12 per cent and for high flow nasal canula (HFNC) device to 5 per cent from 12 per cent. "These rates will be valid till September as against August-end recommended by the GoM," said Sitharaman while addressing a press conference after the meeting of the GST Council.
Also Read | FM Sitharaman: Indian economy witnessing strong recovery
"Based on the advice and also from states' input whether that period has to be further extended will be taken as a call nearer the time and the GIC will probably take the responsibility of eliciting the opinions, taking inputs of political leadership and meeting to take a final word on whether the extension should be furthered after September," said Sitharaman.
(ANI)