The 44th GST Council held under the Chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman via video conferencing on 12th day of June, 2021, in New Delhi. Union minister of state (MoS) for finance Anurag Thakur and finance ministers of states and Union territories (UTs) attended the virtual meeting, which was held to discuss the report of the Group of Ministers for GST Concessions on Covid Relief Items.
The GoM was entrusted to examine and make recommendations on the need for GST concession/ exemption on, -
- COVID vaccines, drugs and medicines for COVID treatment, and testing kits for COVID detection,
- Medical grade oxygen, Pulse Oximeters, Hand sanitizers, Oxygen therapy equipment such as concentrators, generators and ventilators, PPE kits, N95 masks, surgical masks, temperature checking equipment
- Any other items required for COVID relief.
The council rationalized rates on the specified items being used in Covid-19 relief and management based on recommendations from a Group of Ministers formed in its previous 43rd GST Council Meeting. The reductions and exemptions in GST rates will remain in effect till 30th September 2021.
The key recommendations made by the GST council, during the meeting, are as:
A.GST on Covid Medicines
- The GST Council has approved rate reduction for Tocilizumab, Amphotericin B from 5% to Nil and for Remdesivir from 12% to 5%.
- The GST Council has approved rate reduction for anti-coagulants like Heparin has been reduced from 12 percent at present to 5 percent.
- The GST council also approved that the tax rate on any other drug recommended by the Ministry of Health and Family Welfare (MoHFW) and the Department of Pharma (DoP) for Covid treatment would also be charged at 5 percent.
B. GST on Oxygen, Oxygen generation Equipment and Related Medical Devices
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GST rate on Medical grade oxygen has been reduced from 12% at present to five percent.
GST rate on Oxygen concentrator or Generator, including personal imports thereof, Ventilators, ventilator masks, canula or helmet, BiPAP machines, and High Flow Nasal Cannula (HFNC) device has been reduced from 12% at present to five percent.
C. GST on COVID Testing kits and Machine
- GST rate on Covid testing kits and Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin, and LDH has been reduced from 12% at present to five percent.
D. Other Covid Relief Items
- The tax rate for Pulse oximeters, including imported for personal use, has been reduced from 12 percent to 5 percent.
- The tax rate for hand sanitizers and temperature check equipment has been reduced from 18 percent to 5 percent.
- The tax rate for Gas/Electric/other furnaces for the crematorium, including their installation, etc. has been reduced from 18 percent to 5 percent.
- The tax rate for Ambulances has been reduced from 28 percent to 12 percent.
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