The tax on medicines and other COVID-19 essentials like hospital equipment has been reduced by the Goods and Services Tax Council on Saturday,12 June.
Finance Minister Nirmala Sitharaman chaired the 44th Goods and Services Tax (GST) Council meeting and announced the changes based on the recommendations made by the group of ministers (GoM) constituted to discuss the tax rates of COVID-19-related essentials.
The council said that no tax will be charged for medicines like Tocilizumab and Amphotericin B, used for treating black fungus. Vaccines for COVID-19, however, will continued to be taxed at 5 percent GST.
These tax cuts will remain valid till 30 September 2021 and can be extended further if needed. While drugs like used to treat mucormycosis are now exempted from GST, other drugs considered essential for the treatment of COVID-19 will now be taxed at 5 percent.
“GST on electric furnaces and temperature-checking equipment brought down to 5 percent and on ambulances to 12 percent. These rates will be valid till September as against August end recommended by the GoM.”Finance Minister Nirmala Sitharaman at a post-meeting press conference
The council, which previously met on 28 May, implemented tax cuts for a list of items considered essential for the ongoing fight against COVID-19.
The new tax rates as announced by the Finance Ministry.
(Photo Courtesy: Facebook/Ministry of Finance)
According to the Ministry of Finance, the meeting was attended by Anurag Thakur, Minister of State for Finance, along with finance ministers and senior officials of the states and Union territories.
Headed by Meghalaya Deputy Chief Minister Conrad Sangma, the group of ministers discussed GST concessions on COVID-19 medical essentials and decided the change in tax rates for items under 4 categories – medicines, oxygen, oxygen-generation equipment, testing kits and other machines.
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