Monday, August 2, 2021
DSGMC 728

400 August

Pension 1500 gif

Shaheed 50 lakh gif

Kisan Karza 5.64 lakh gif

Kisan 48 hours gif

Ashirwad 51000 gif

Sohna Markfed

Innocent Admission

GST cuts for several Covid-relief items; no change in vax tax

- Advertisement -

New Delhi, June 12, 2021 –
Amid calls for lower levies on items and medicines required in Covid-19 treatment, the GST Council on Saturday decided to slash rates of several Covid-relief items to 5 per cent from existing 12-18 per cent levels, although it kept the much talked-about tax rate on vaccines unchanged at 5 per cent.

Addressing the media post the GST Council meet, Finance Minister Nirmala Sitharaman said that the council agreed to go with the recommendations of the Group of Ministers (GoM) that was single point agenda on the council on Saturday.

She said that while rate of tax on various Covid relief medical items has been reduced, no change had been made in 5 per cent GST rate on vaccines but it would not impact the public as vaccination is being provided for free.

Sitharaman said that Centre will be paying and receiving 75 per cent of all the tax collected on it, which will be further distributed with states.

She had earlier said that exempting vaccines from GST would deny input tax credit on raw material and supplies that could impact its pricing.

As part of Covid relief measures, the 44th meeting of the GST Council reduced GST rate on Remdesivir to 5 per cent from 12 per cent and that of medical grade oxygen to 5 per cent.

The council has also reduced the rates on Amphotericin B, medicine used for black fungus and brought it to nil level exempting 5 per cent rate.

The tax rate on Tocilizumab, used for treatment of Covid-19 has also been waived off. The previous tax rate was 5 per cent.

The rate on anti-coagulants like Heparin has also been slashed to 5 per cent.

Further, the council headed by the Finance Minister also decided that the tax rate on any other drug recommended by Ministry of Health and Family Welfare (MoHFW) and Department of Pharma (DoP) for Covid treatment, would be kept at 5 per cent.

In terms of life saving equipment and products, low availability of which caused a lot of panic across the country, both in the first and the second wave including medical grade oxygen, oxygen generators and ventilators, have also been reduced.

GST on medical grade oxygen, oxygen concentrator, generators, including personal imports, ventilators, BiPAP Machines and high flow nasal canula device has been reduced from 12 per cent to 5 per cent.

Low availability of medical grade oxygen in hospitals was witnessed during the initial period of the second wave of Covid-19 and in the first wave, it was the lack of ventilators which was a grave concern in the country.

Rates of pulse oximeters, hand sanitisers, temperature check equipment, gas, electric or other furnaces for crematorium, including their installation among others have also been reduced to 5 per cent.

Now, Covid testing kits too would be taxed at 5 per cent, against the previous rate of 12 per cent.

In another major move, the GST rate on ambulances has been reduced to 12 per cent from the previous 28 per cent.

The special duty cuts would be applicable till September 30, 2021. Sitharaman said that though GoM recommended the rate cuts till August, the council decided to keep it till September ended and will later decide if further extension is required.

On its part, India Inc welcomed the move by GST Council.

Industry body PHDCCI welcomed the calibrated reduction in the rates of GST on ‘Remdesivir’, ventilators, medical grade oxygen, Covid-19 testing kits, oxygen concentrators and ‘BiPAP’ machine from 12 to 5 per cent and no tax on ‘Tocilizumab’.

“This will go a long way in treating covid cases and tp provide required relief for treatment of infections,” the industry body said.

“No tax on ‘Amphotericin B’, the antifungal drug used for black fungus treatment, is a significant step to reduce the burden on black fungus patients.”

According to Rajat Bose, Partner, Shardul Amarchand Mangaldas & Co.: “GST rate cut on Covid related items is a step in the right direction. It is likely that the situation will be reviewed around September and if required, the rate cut will be extended for a further period.”

“The sharing of revenue from GST on Covid vaccine by Centre with States is also a good move and will help the States financially.”

In addition, M.S. Mani, Senior Director, Deloitte India said: “While the reductions on medication and equipment are good welfare measures, curtailment of the exemption period would make it difficult for businesses to plan new investments and expand their supply chains in order to ensure that they reach all corners of the country.”

“Businesses engaged in their manufacture and trading would hope that the period is extended beyond 30th September.” (Agency)

Subscribe to YesPunjab Telegram Channel & receive important news updates

- Advertisement -

Yes Punjab - TOP STORIES

Punjab News

Sikh News

Transfers, Postings, Promotions

- Advertisement -spot_img

Stay Connected

20,369FansLike
111,951FollowersFollow

ENTERTAINMENT

National

GLOBAL

OPINION

Delhi Police Security

Effective policing is the foundation of internal security – by DC Pathak

An important lesson drawn by India from the ongoing pandemic is that strict crime control and maintenance of law and order are needed to...
Attack on Chinese in Pakistan

Who is behind the attack on Chinese in Pakistan – by Amjad Ayub Mirza

The deadly attack, carried out on July 15, on a coach carrying Chinese engineers to an under-construction tunnel site at the 4300 MW Dasu...
Coexistence

Coexistence, a unifying factor for Indians – by Asad Mirza

For most political parties, sociologists and psephologists what a common Indian on the street thinks matters most. It is an insight into a common...

SPORTS

Health & Fitness

Diabetes Written

This ‘leafy’ solution to diabetes has many takers

Prayagraj (Uttar Pradesh), Aug 1, 2021- There is no qualified research to prove it but people claim that they have benefitted and now swear by it. The leaves of the African bitter leaf tree/plant are said to have helped people reduce their blood sugar levels. Gopal Tiwari, 72, is now popularising the benefits of the leaves by regularly distributing them to...

Gadgets & Tech

error: Content is protected !!